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Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses LA LA LA 6 $ $ $ $ H HA 6 11 12 8 4 60, 500 $ 295,000 During this year, 30,250 units were produced and 25,250 units were sold. The Finished Goods inventory account at the end of this year shows a balance of $115,000 for the 5,000 unsold units. Required: 1-a. Calculate this year's ending balance in Finished Goods inventory two ways-using variable costing and using absorption costing. 1-b. Does it appear that the company is using variable costing or absorption costing to assign costs to the 5,000 units in its Finished Goods inventory? 2. Assume that the company wishes to prepare this year's financial statements for its stockholders. a. Is Finished Goods inventory of $115,000 the correct amount to include on the balance sheet for external reporting purposes? b. What balance should be reported in the Finished Goods inventory account for external reporting purposes?

Calculate this year's ending balance in Finished Goods inventory two ways - using variable costing calculation to the nearest dollar amount.) Assume that the company wishes to prepo. this year's financial statements for its stockholdens. Is Finished Goods inventory of $115,000 the conect amount to include on the balance sheet for extemal reporting purposes? D. What balance should be reported in the Finished Goods inventory account for external reporting purpo Complete this question by entering your answers in the tabs below. Assume that the company wishes to prepare this year's financial statements for its stockholders. What balance should be reported in the inventory account for extemal reporting purposes? During this year, 30,250 units were produced and 25,250 units were sold. The Finished Goods inventory account at the end of this year shows a balance of $115,000 for the 5,000 unsold units. Required: 1-a. Calculate this year's ending balance in Finished Goods inventory two ways-using variable costing and using absorption costing. 1-b. Does it appear that the company is using variable costing or absorption costing to assign costs to the 5,000 units in its Finished Goods inventory? 2. Assume that the company wishes to prepare this year's financial statements for its stockholders. a. Is Finished Goods inventory of $115,000 the correct amount to include on the balance sheet for external reporting purposes? b. What balance should be reported in the Finished Goods inventory account for external reporting purposes

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