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ACC 561 Q13-B3 Consider the following information pertaining to a year’s operations of Youngstown Manufacturing:

13-B3 Consider the following information pertaining to a year’s operations of Youngstown Manufacturing:

13-B3 COMPARISON OF VARIABLE COSTING AND ABSORPTION COSTING PAGE 617

ACC 561 Question 13-B3 Consider the following information pertaining to a year’s operations of Youngstown Manufacturing:
 
Question 13 B3: 
13-B3 Comparison of Variable Costing and Absorption Costing
Consider the following information pertaining to a year’s operations of Youngstown Manufacturing:
Units sold 1,400
1400
Units produced 1,600
1600
Direct labor $4,200
4200
Direct materials used 3,500
3500
Fixed manufacturing overhead 2,200
2200
Variable manufacturing overhead 300
300
Selling and administrative expenses (all fixed) 700
700
Beginning inventories 0
0
Contribution margin 5,600
5600
Direct-material inventory, end 800
800

There are no work-in-process inventories.

1. What is the ending finished-goods inventory cost under absorption costing?
2. What is the ending finished-goods inventory cost under variable costing?

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