follows: Number of units in the beginning inventory Number of units produced Number of units sold Number of units in the ending inventory Selling price per unit Variable costs per unit Direct materials Direct labour Variable overhead Variable selling and administrative expenses Fixed overhead Fixed selling and administrative expenses (total) 2021 0 60,000 54,000 6,000 $300 $80 $40 $35 $28 $2,400,000 $324,000 Required: A. Prepare the 2022 income statement using absorption costing. B. Prepare the 2022 income statement using variable costing. 2022 6,000 50,000 54,000 2,000 $300 $80 $45 $35 $30 $2,400,000 $324,000 There was no finished goods inventory on January 1, 2021. The company uses the FIFO method for inventories.

follows: Number of units in the beginning inventory Number of units produced Number of units sold Number of units in the ending inventory Selling price per unit Variable costs per unit Direct materials Direct labour Variable overhead Variable selling and administrative expenses Fixed overhead Fixed selling and administrative expenses (total) 2021 0 60,000 54,000 6,000 $300 $80 $40 $35 $28 $2,400,000 $324,000 Required: A. Prepare the 2022 income statement using absorption costing. B. Prepare the 2022 income statement using variable costing. 2022 6,000 50,000 54,000 2,000 $300 $80 $45 $35 $30 $2,400,000 $324,000 There was no finished goods inventory on January 1, 2021. The company uses the FIFO method for inventories.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 12EA: What are the total costs to account for if a companys beginning inventory had $231,432 in materials,...

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