Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in the year, tgit inc. incurred the following cost

In the year, TGIT Inc. incurred the following costs Direct materials Direct labour Variable manufacturing...

60.1K

Verified Solution

Question

Accounting

imageimage

In the year, TGIT Inc. incurred the following costs Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses $ 4.00 per unit $5.00 per unit $3.00 per unit 100,000 $1.00 per unit $40,000 In the year, TGIT produced 40,000 units and sold 42,000 units. The company had no beginning or ending work-in- process inventory. However, there are 5,000 units in beginning finished goods inventory. The 5,000 units produced in the previous year have the same costs per unit as the units produced in the year Hint be clear about the difference between absorption and variable costing models Using the information provided, answer the following questions: a) Without making any calculations, which costing method will produce a higher net income for TGIT? b) How many units are in finished goods inventory on December 31? units c) Under variable costing, what is the product cost per unit? per unit d) Under variable costing, what is the total value of TGIT's finished goods inventory on December 31? e) Under variable costing,what is the total selling and administrative expense for the year? f Under absorption costing, what is the product cost per unit? per unit

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students