Cryital Corporation produces a single product The companys v

Cryital Corporation produces a single product. The company\'s verilable costing income statement for the month of May appears below Income Statement Sales 1510 per ui Verlable expense $1214000 Vsable cost of goods sold Verabie seling expense 1400 O 58820 caps lock command opon controloption command

Solution

Units sold = $1,214,000/10

= 1,21,400

Units in beginning inventory +Units produced =Units sold +Units in ending inventory

34,000+1,08,000 =1,21,400 + Units in ending inventory

Units in ending inventory = 20,600

Variable cost of goods sold ($607,000 /1,21,400 units)	$ 5
Fixed manufacturing overhead cost ($291,600/ 1,08,000 units)	$2.7
Absorption costing unit product cost (a)	$7.7
Units in ending inventory (b)	20,600
Value of ending inventory under absorption costing (a) x (b)	$158,620