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During the most recent year, Madison Inc. had the following data:
| Beginning inventory in units - | - |
| Units produced | 13,500 |
| Units sold ($120 per unit) | 8,200 |
| Variable costs per unit | - |
| Direct materials | $12 |
| direct labor | $16 |
| Variable overhead | $9 |
| Fixed costs: | - |
| Fixed overhead per unit produced | $23 |
| Fixed selling and administrative | $125,000 |
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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