Question 2 The income statement for Tiger Co. for 2015 is summarized as follows: Sales...
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Question 2 The income statement for Tiger Co. for 2015 is summarized as follows: Sales (200,000 units) $3,000,000 Variable costs 1,000,000 Contribution margin 2,000,000 Fixed costs (80% manufacturing related) 500,000 Operating income $1,500,000 Variable costs include: Direct materials $1.50/unit $300,000 Direct labour $2.00/unit $400,000 Variable MOH $1.25/unit $250,000 Variable selling & admin $0.25/unit $50,000 There were 0 units in beginning inventory, and 50,000 units in ending inventory. Required - a) Calculate the total cost of ending inventory for 2015 under the variable costing method. b) Calculate the total cost of ending inventory for 2015 under the absorption costing method c) Create an absorption costing income statement for Tiger Co for 2015
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