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The following data relate to Santa Mia, Incorporated, a new company:
| Planned and actual production | 200,000 | units |
| Sales at $48 per unit | 170,000 | units |
| Manufacturing costs: | | |
| Variable | $18 | per units |
| Fixed | $ 840,000 | |
| Selling and administrative costs: | | |
| Variable | $7 | per units |
| Fixed | $ 925,000 | |
There were no variances during the period.
Required:
- Determine the number of units in the ending finished-goods inventory.
- Calculate the cost of the ending finished-goods inventory under
- variable costing and
- absorption costing.
- Determine the company's variable-costing income.
- Determine the company's absorption-costing income.
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