In the current year, TGIT Corp. produced 10,000 units and sold 8,000 of the units....
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In the current year, TGIT Corp. produced 10,000 units and sold 8,000 of the units. The company incurred the following costs: Direct materials used Direct labour cost Variable manufacturing overhead Fixed manufacturing overhead Fixed selling and admin. expense Variable selling and admin. expense $120,000 68,000 40,000 60,000 45,000 36,000 There was no beginning finished goods inventory and no beginning or ending work-in-process inventory Use the information provided to answer the following questions: aa) Without doing any calculations, would net income be higher for the year under absorption costing or under variable costing? a) What is the product cost per unit? Under variable costing? per unit Under absorption costing? per unit b) Would net income be higher for the year under absorption costing or under variable costing? And by what amount? c) Would both of your answers in b) be the same if you were told that on January 1, TGIT had 1,000 units in finished goods inventory with the same cost per unit
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