Under the absorption costing, the total product costs should be:
Warmuplang Corporation showed the following costs for 2020
Warehouse
Salaries of warehouse supervisor 200,000
Increase in RM inventory 20,000
Direct material purchases 120,000
Direct labor costs incurred 180,000
Variable selling costs 80,000
Question 1: Under the absorption costing, the total product costs should be:
Question 2: if the company produced and sold 100,000 and 90,000 units, respectively during 2020. How much would be the difference in net income under absorption and variable costing?
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