[teewnash]

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?

[ram19582003]

This does not help when all you get is the problem but does not explain how to come up with the answer. Need a formula that will help.

[morgaine300]

Um, ram... the idea is that if you're going to try to answer the poster's question, you know how to come up with the answer. The asker is the one who doesn't know how to do it, or wants work checked, and the responder is the one who's supposed to know how to do it.

That said, we do have guidelines for posting homework that we do not just do work for students. We will check their work and guide them, we'll answers specific questions they have about it, etc. i.e. help them and explain stuff, but not just do it for them.

Are you under the impression that the person who posts the homework is also giving away the answers so that others can just grab the solution? No, no - this site is not here to do that - we consider that your work was assigned to you for a reason: for you to do and learn from. We'll help with the learning, but not the doing.

[ram19582003]

No. I just need to know the formula so that I can get the answer by myself. It does not help if I cannot work the problem by myself. If someone else works it, then I will not learn anything.