Cost of venture end-of-period finished-goods inventory


The following data relate to Venture Company, a new corporation, during a period when the firm produced and sold 100,000 units and 90,000 units, respectively:

-Direct Materials Used $400,000

-Direct Labor $200,000

-Fixed Manufacturing Overhead $250,000

-Variable Manufacturing Overhead $120,000

-Fixed Selling and Administrative Expenses $300,000

-Variable Selling and Administrative Expenses $45,000

The company met its original planned production target of 100,000 units. There were no variances during the period, and the firm's selling price is $15 per unit.

Required:

Q1. What is the cost of Venture's end-of-period finished-goods inventory under the variable-costing method?

Q2. Calculate the company's variable-costing net income.

Q3. Calculate the company's absorption-costing net income.

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Accounting Basics: Cost of venture end-of-period finished-goods inventory
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