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During the most recent year, ABC Corp. had the following data:
| Beginning inventory in units | - |
| Units produced | 16,000 |
| Units sold ($125 per unit) | 15,000 |
| Variable costs per unit: | |
| Direct materials | $ 10 |
| Direct labor | $ 18 |
| Variable overhead | $ 6 |
| Fixed costs: | |
| Fixed overhead per unit produced | $ 25 |
| 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. Prepare an income statement using absorption costing.
E. Prepare an income statement using variable costing.
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