13.90 – 2.

80

24,300 x 38

24,300 x 13

11,000 – 4,800

(24,300 x 1.50) + 219,500

COGS 549,460
Less: fixed overhead underapplied (2,900)
COGS before adjusting underapplied OH 546,560
Divide: Unit sold 38,900
Per unit cost 14.0504
Cost of ending inventory (1,800 x 14.0504) $25,291
Solution:
COGS 549,460
Less: fixed overhead underapplied (2,900)
COGS before adjusting underapplied OH 546,560
Divide: Unit sold 38,900
Per unit cost 14.0504
Cost of ending inventory (1,800 x 14.0504) $25,291
(40,700 – 38,900 = 1,800)
 Solution (Variable Costing):
Per unit cost as per absorption costing 14.0504
Less: fixed overhead per unit (0.75)
Unit cost under variable costing 13.3004
Cost of ending inventory (1,800) $23,941

(38,900 x 0.75) + 2,900 – 549,460

(40,700 x 0.75) + 2,900

Operating income as per absorption costing 43,040

Operating income as per variable costing 41,690
Difference 1,350

Ending inventory = Beginning inventory + Production – Unit sold = 1,400 + 100,000 -101,000

(1,400 – 400) = 1,000

FOH per unit = 200,000 / 100,000 = 2
1,000 x 2 = 2,000
 SP $32 x 101,000

8 + 10 + 1 = 19
101,000 x 19 = 1,919,000
101,000 x 2

8 + 10 + 1 + 2 = 21
101,000 x 21 = 2,121,000

Variable selling expense 202,000

Fixed S&A expense 240,000
442,00

6,000 – 1,000 = 5,000

5,000 x 30 FOH = 150,000
Solution:
Sales (8,000 units x 150) 1,200,000
COGS ((40 + 16) x 8,000) ( 448,000 )
Gross margin 752,000
Fixed selling & admin. Expenses 140,000
Variable S & A ($16 x 10,000) 160,000 (300,000)
Net income $452,000

Solution:
Sales 2,530,000
Variable expenses:
Variable production cost 1,035,000
Variable S & A expense 287,500 (1,322,500)
Contribution margin 1,207,500
Fixed expenses:
Fixed production cost 620,000
Fixed S & A expenses 350,000 (970,000)
Net income $237,500
Solution:

Solution:
($600,000 / 100,000) x 5,000 (100,000 – 105,00) = $30,000
50,000 – 30,000 = $20,000