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    Calculation of Ending Finished Goods Inventory

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    Answer questions on Comparison of Variable Costing and Absorption Costing attached. Please show work.

    Youngstown Manufacturing and Chan Manufacturing Company.

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    Calculation of Ending finished goods inventory under Absorption costing
    1) Step 1 : We will calculate the Manufacturing costs for the total unit production of 1600 units

    Cost of Goods Sold= Direct Labor + Direct Materials used + Variable manufacturing overhead+Fixed Manufacturing Overhead

    2) Step 2 : Calculate the Ending finished goods inventory
    Cost of 1600 units =$8000 (As calculated in Step 1)
    Cost per unit= 10200/1600=$6.38 per unit

    Cost of ending inventory of 200 ...

    Solution Summary

    Response provides the steps of calculation of ending finished goods inventory under absorption costing.