problem: Comparison of Variable Costing & Absorption Costing
Consider the following data pertaining to a year's operations of Youngstown Manufacturing:
Units sold 1,400
Units produced 1,600
Direct labor $4,200
Beginning inventories 0
Contribution margin 5,600
Direct-material inventory, end 800
Direct materials used 3,500
Fixed manufacturing overhead 2,200
Variable manufacturing overhead 300
Selling and administrative expenses (all fixed) 700
There are no work-in-process inventories.
[A] Determine the ending finished goods inventory cost under absorption costing?
[B] Determine the ending finished goods inventory cost under variable costing?