Homework SourseAdvanced Company reports the following information for the c
Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.
33.Given Advanced Company\'s data, compute cost of finished goods in inventory under absorption costing.
$230,000
$427,500
$285,000
$345,000
$712,500
34.Given Advanced Company\'s data, compute cost of finished goods in inventory under variable costing.
$712,500
$345,000
$230,000
$427,500
$285,000
| Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. |
Solution
33./
COST PER UNIT UNDER ABSORPTION COSTING.
34./
COST PER UNIT UNDER VARIABLE COSTING.
| DIRECT MATERIAL | $9 |
| DIRECT LABOUR | $11 |
| VARIABLE OVERHEAD ($75000 / 25000) | $3 |
| FIXED OVERHEAD ($137500 / 25000) | $5.50 |
| TOTAL COST PER UNIT | $28.50 |
| TOTAL CLOSING STOCK UNIT (25000 - 15000) | 10000 |
| VALUE OF CLOSING STOCK (10000 * $28.50) | $285000 |
