Response to the following problem:
During its first year of operations Speak! Zoie Inc. Show more Absorption , Variable and Throughput Costing During its first year of operations, Speak! Zoie, Inc. produced 55,000 bags of dog biscuits based on a formula containing 10% chicken. Unit sales were 53,500 bags. Fixed overhead was applied at $0.50 per unit produced. Fixed overhead was underapplied by $10,000. This fixed overhead variance wasclosed to Cost of Goods Sold. The results of the year's operations are as follows (on an absorption costing basis):
Sales (53,500 units @ $8.50) $454,750
Less: Cost of Goods Sold 170,500
Gross Margin $284,250
Less: Selling and Administrative (all fixed) 120,000
Operating Income $164,250
1.Prepare variable Costing income statement
2 .Prepare a throughput-costing income statement.
Of the total variable cost for manufacturing directmaterial is 40%, direct labor is 10% and variable overhead is 50%.
QUESTIONS:
1. Give the cost of the firms ending inventory underabsorptioncosting.
2. Give the cost of the firms ending inventory under variable costing.
3. Give the cost of the firms ending inventory under throughput costing.
4. What is the budgeted production show less.