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    paradiseplum's Avatar
    paradiseplum Posts: 1, Reputation: 1
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    Feb 13, 2009, 01:39 PM
    Comparison of Variable Costing and Absorption Costing
    13-B3 Comparison of Variable Costing and Absorption Costing
    Consider the following information pertaining to a year’s operations of Youngstown Manufacturing:

    Units sold 1,400
    Units produced 1,600
    Direct labor $4,200
    Direct materials used 3,500
    Fixed manufacturing overhead 2,200
    Variable manufacturing overhead 300
    Selling and administrative expenses (all fixed) 700
    Beginning inventories 0
    Contribution margin 5,600
    Direct-material inventory, end 800


    There are no work-in-process inventories.
    1. What is the ending finished-goods inventory cost under absorption costing?
    2. What is the ending finished-goods inventory cost under variable costing?
    aleciafiscus1's Avatar
    aleciafiscus1 Posts: 1, Reputation: 1
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    Jul 27, 2010, 06:15 PM

    Regarding the information above do I need to know the unit price to answer the questions? If I do how do I arrive at that figure?
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