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13 B3 Comparison Of Variable Costing And Essay

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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
Units produced 1,600
Direct labor $4,200
Direct materials used 3,500
Fixed manufacturing overhead 2,200
Variable manufacturing overhead 300
Selling and administrative expenses (all fixed) 700
Beginning inventories 0
Contribution margin 5,600
Direct-material inventory, end 800
There are no work-in-process inventories.

1. What is the ending finished-goods inventory cost under absorption costing? Cost per unit = Total Manufacturing cost 10,200 / Units produced 1,600 = $6.375 Units produced 1,600 - Unit...

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