Question - Inventory Valuation under Absorption Costing

During the most recent year, Judson Company had the following data associated with the product it makes:

Units in beginning inventory 300

Units produced 15,200

Units sold ($300 per unit) 12,700

Variable costs per unit: 

Direct materials $20

Direct labor $60

Variable overhead $12

Fixed costs: 

Fixed overhead per unit produced $30

Fixed selling and administrative $140,000

1. How many units are in ending inventory?

2. Using absorption costing, calculate the per-unit product cost.

3. What is the value of ending inventory under absorption costing?

Question - Inventory Valuation under Variable Costing

During the most recent year, Judson Company had the following data associated with the product it makes:

Units in beginning inventory 300

Units produced 15,000

Units sold ($300 per unit) 12,700

Variable costs per unit: 

Direct materials $20

Direct labor $60

Variable overhead $10

Fixed costs: 

Fixed overhead per unit produced $30

Fixed selling and administrative $140,000

1. How many units are in ending inventory?

2. Using variable costing, calculate the per-unit product cost.

3. What is the value of ending inventory under variable costing?