sells 800 pillows. What will be amount in ending inventory using Absorption costing?A) $5,400 B) $6,600C) $12,150 D) $9,000BI + PRODUCED – SOLD = EI250 + 1000 – 800 = 450 X 27 = 12, 150
Moore Company prepared the following absorption-costing income statement for the year ended May 31, 2011. Sales (8,000 units)$160,000Cost of goods sold108,000Gross margin$52,000Selling and administrative expenses23,000Operating income$ 29,000Additional information follows: Selling and administrative expenses include $1.50 of variable cost per unit sold. There was no beginning inventory, and 8,750 units were produced. Variable manufacturing costs were $11 per unit. Actual fixed costs were equal to budgeted fixed costs. 25.What is operating income using variable costing?
Required: Prepare a variable-costing income statement for the same period.