Last year, Stephen Company had 20,000 units in its ending inventory. During the year, Stephen's variable production costs were $12 per unit. The fixed manufacturing overhead cost was $8 per unit in the beginning inventory. The company's net income for the year was $9,600 higher under variable costing than it was under absorption costing. Given these facts, the number of units of product in the beginning inventory last year must have been how much?

Q: Janos Company, which has only one product, has provided the following data concerning its most…

A: The absorption costing assumes fixed and variable manufacturing costs to be included in the cost of…

Q: Barbie Company, which has only one product, has provided the following data concerning its most…

A:

Q: Keyser Corporation, which has only one product, has provided the following data concerning its most…

A: Working Notes: 1. Sales = selling price * units sold =  ($105 *8600 units) = $903,000

Q: 4. Ignacio Company, which has only one product, has provided the following data concerning its most…

A: Variable costs are those costs which change directly with change in activity. Fixed costs are those…

Q: During the year, FITA Corporation produced 500 units of new products. The new product’s variable and…

A: Absorption costing: It is one of the managerial accounting methods under which all the costs that…

Q: Plummer Corporation has provided the following data for its two most recent years of operation: $ 44…

A: Absorption costing means that inventory is valued at total manufacturing cost including fixed…

Q: Moskowitz Corporation has provided the following data for its two most recent years of operation:…

A: We know, Net operating income = Sales - Total Cost   Sales = Units Sold * Selling Price   Total Cost…

Q: Mobile, Inc. manufactured 700 units of a new product A during the year. The variable cost of product…

A: Inventory forms a part of current assets of the entity and is included in the asset section of…

Q: Baughn Corporation, which has only one product, has provided the following data concerning its most…

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: Helmers Corporation manufactures a single product. Variable costing net operating income last year…

A: Absorption costing net operating income last year = Variable costing net operating income last year…

Q: At the end of last year, Amelie had 30,000 units in its ending inventory. Amelie's variable…

A: Difference in Units=Difference in Net income Fixed Manufacturing overhead per unit

Q: Rhea Corporation has provided the following data for its two most recent years of operation:…

A: Operating income: Income statement reports revenues and expenses from business operations, and the…

Q: The following information is available for SAN JOSE CORP.'s new product line: Sale price per unit…

A: The direct costing is similar to variable costing where only direct variable costs are added to…

Q: Baraban Corporation has provided the following data for its most recent year of operation:…

A: Under variable costing , units are valued at variable manufacturing cost . Fixed cost is not…

Q: Nelter Corporation, which has only one product, has provided the following data concerning its most…

A:

Q: Moskowitz Corporation has provided the following data for its two most recent years of operation:…

A: Fixed overhead per unit in Year 1=48000012000=$40Fixed overhead per unit in Year…

Q: During the previous year, Casually Company had the following data: Units in beginning inventory…

A: 1.  Product cost Per Unit under absorption costing, would be calculated as follows :  Particular…

Q: Alyssa Company produces a single product. Last year, the company had 16,000 units in its beginning…

A: Total increase in inventory = Higher profit as per absorption costing / fixed manufacturing overhead…

Q: Levy company produces a single product last year the company net operating income computed by the…

A: As per the variable costing method, only variable cost is measured but under absorption costing both…

Q: During the year, FITA Corporation produced 500 units of new products. The new product’s variable and…

A: Absorption costing and variable costing are two methods of costing. Under absorption costing, total…

Q: Oak Mart, a producer of solid oak tables, reports the following data from its second year of…

A: The income statement is prepared to find the net income during the year.

Q: Baraban Corporation has provided the following data for its most recent year of operation:…

A: Variable costing is a method under which the fixed costs are considered as period costs and charged…

Q: The Dorset Corporation produces and sells a single product. The following data refer to the year…

A: Income statement can be prepared using different methods as absorption costing and variable costing.…

Q: CollegePak Company produced and sold 60,000 backpacks during the year just ended at an average price…

A: Calculation of number of sale units: Answer: Number of sale units that will earn a net income of…

Q: Moskowitz Corporation has provided the following data for its two most recent years of operation:…

A: Unit product cost under variable costing  = Direct materials + Direct labor + Variable manufacturing…

Q: Moskowitz Corporation has provided the following data for its two most recent years of operation:…

A: Change in inventory = Beginning inventory - Ending inventory = 3,000 units - 3,000 units = 0

Q: Oak Mart, a producer of solid oak tables, reports the following data from its second year of…

A: Variable Costing is an income statement whereby net income is arrived at by deducting variable costs…

Q: ​Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced…

A: Answer:   “Option c”.

Q: Orange Company produces single product. Last year, the company’s net operating income computed by…

A: Inventory can be defined as the goods that a business holds in its storage for the purpose of sale…

Q: Homeyer Corporation has provided the following data for its two most recent years of operation:…

A: All indirect expenses involved during the manufacturing process are referred to as manufacturing…

Q: Jervix Corporation, which has only one product, has provided the following data concerning its most…

A: Absorption costing means that inventory is valued at total manufacturing cost including fixed…

Q: Aaron Corporation, which has only one product, has provided the following data concerning its most…

A: The contribution margin is calculated as difference between sales and variable costs.

Q: Shazam Company had 16,000 units in its beginning inventory. During the year, the company’s variable…

A: Absorption costing and variable costing are two methods which are used. Under absorption costing,…

Q: Oak Mart, a producer of solid oak tables, reports the following data from its second year of…

A: Under variable costing the unit product cost is sum total of direct material , direct labor and…

Q: Davison Corporation, which has only one product, has provided the following data concerning its most…

A: Variable costing includes the cost which vary from output to ouput. It does not include the fixed…

Q: Oak Mart, a producer of solid oak tables, reports the following data from Its second year of…

A: The difference between Variable costing and Absorption costing occurs due to the Fixed overhead…

Q: Pacific Inc. has provided the following data for the latest quarter of the most recent year: Sales…

A: The following computations are done for Pacific Incorporation.

Q: Janos Corporation, which has only one product, has provided the following data concerning its most…

A: Variable costing: Variable costing is one of the cost accounting methods. In this method, the…

Q: Baraban Corporation has provided the following data for its most recent year of operation:…

A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Q: During the year, ABS Corporation produced 500 units of new products. The new product’s variable and…

A: Absorption costing and variable costing are two methods of costing. Under absorption costing, total…

Q: Baraban Corporation has provided the following data for its most recent year of operation:…

A: Absorption costing is a method in which every direct cost required to produce a product is included…

Q: 4. Ignacio Company, which has only one product, has provided the following data concerning its most…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: Baraban Corporation has provided the following data for its most recent year of operation:…

A: Unit product cost under variable costing    Direct materials Add Direct labor Add Variable…

Q: Beech Company produces a single product. The company has 55,000 units in its beginning inventory.…

A: Profit under Variable costing is lower if ending inventory is higher than beginning inventory Units…

Q: Baraban Corporation has provided the following data for its most recent year of operation:…

A: For calculating product units cost , the cost related with factory i.e direct material , direct…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.