Part 8 Variable Costing and Full Absorption Costing: Inventory Changes (20 points) The company's Fixed...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Part 8 Variable Costing and Full Absorption Costing: Inventory Changes (20 points) The company's Fixed Manufacturing Cost is $30,000 each month. In month 1, one unit is completed and one unit is half completed [thus $20,000 of Fixed Manufacturing Costs are included in each finished unit under Absorption Costing]. In month two, the second unit is completed and a third unit is started and completed. All three units are sold in Period 2 . Disregard sales and variable costs when completing the company's income statements. Comparative Income Statements Complete The income Statement Reconciliation of the two costing approaches is shown below. Absorption Costing Income 0 i I Note: ($60,000) represents two months of Fixed Manufacturing Costs. Required Fill in the appropriated spaces for lines 1 through I. Show some work
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
