13-b3 - 13-B3 Costing Production costs: Direct materials...

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Unformatted text preview: 13-B3 Costing Production costs: Direct materials used Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total Ending Inventory (1) (2) Absorption Variable Costing $3,500 $3,500 4,200 4,200 300 300 2,200 $10,200 $8,000 $1,275 $1,000 Ending Inventory (in units) = Unites Produced – Units Sold = 1,600 – 1,400 = 200 units Ending Inventory = [Total Cost × Ending Inventory (in units)] ÷ Units Produced Absorption: = ($10,200 ×200) ÷ 1,600 = $1,275 Variable: = ($8,000 × 200) ÷ 1,600 = $1,000 ...
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