Problem:
Managerial Accounting: Computing Inventory balances
Calculate the product cost per unit and the total cost of the 2,100 units in ending inventory using absorption costing and variable costing. An explanation would be great.
Finished Goods Inventory:
Beginning Balance, in units 500
Units Produced 3,100
Units sold (1,500)
Ending Balance 2,100
Production Cost
Variable Mfg costs per unit $ 65
Total fixed Mfg costs 40,300