Variable costing versus absorption costing Yellowstone Fabricators uses a process cost system and applies actual factory overhead to work in process at the end of the month. The following data came from the records for March: E10-1 Direct materials.... $200,000 Direct labor.... $100,000 Variable factory overhead... $ 80,000 Fixed factory overhead.. $ 60,000 ..... .. ..... Selling and administrative expenses $ 40,000 ..... Units produced... 25,000 Units sold..... 20,000 25 Selling price per unit... There were no beginning inventories and no ending work in process inventory. From the information presented, compute the following: 1. Unit cost of production under absorption costing and variable costing. 2. Cost of the ending inventory under absorption costing and var- iable costing. %24

Variable costing versus absorption costing Yellowstone Fabricators uses a process cost system and applies actual factory overhead to work in process at the end of the month. The following data came from the records for March: E10-1 Direct materials.... $200,000 Direct labor.... $100,000 Variable factory overhead... $ 80,000 Fixed factory overhead.. $ 60,000 ..... .. ..... Selling and administrative expenses $ 40,000 ..... Units produced... 25,000 Units sold..... 20,000 25 Selling price per unit... There were no beginning inventories and no ending work in process inventory. From the information presented, compute the following: 1. Unit cost of production under absorption costing and variable costing. 2. Cost of the ending inventory under absorption costing and var- iable costing. %24

Name: EXERCISESVariable costing versus absorption costingYellowstone Fabric
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Description: EXERCISESVariable costing versus absorption costingYellowstone Fabricators uses a process cost system and appliesactual factory overhead to work in process at the lend of themonth. The following data came from the records for March:E10-1L01Direct ma

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 13E: Friedman Company uses JIT manufacturing. There are several manufacturing cells set up within one of...

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