Question - During the most recent year, Boston Corp. had the following data:
Beginning inventory in units -
Units produced 15,000
Units sold ($125 per unit) 12,000
Variable costs per unit:
Direct materials $15
Direct labor $20
Variable overhead $10
Fixed costs:
Fixed overhead per unit produced $20
Fixed selling and administrative $ 200,000
Required:
A. How many units are in ending inventory?
B. Using absorption costing, calculate the per-unit product cost. What is the value of ending inventory?
C. Using variable costing, calculate the per-unit product cost. What is the value of ending inventory?
D. What is the income using variable costing? (not absorption costing).