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Problem VIII ? Inventory Costing SEE ATTACH FIL...

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Problem VIII ? Inventory Costing SEE ATTACH FILE! Kirk Company gathered the following information for the year ended December 31, 2015: Units produced 45,000 Units expected to be produced 45,000 Units sold 43,200 Direct labor $137,200 Direct materials used $126,400 Fixed selling and administrative expenses $51,000 Variable selling and administrative expenses $58,000 Fixed manufacturing overhead $83,250 Variable manufacturing overhead $73,900 Gross margin $171,200 Direct materials inventory, December 31, 2015 0 Direct materials inventory, December 31, 2014 0 Work-in-process inventory, December 31, 2015 0 Work-in-process inventory, December 31, 2014 0 Finished goods inventory, December 31, 2014 0 Required: A) Under absorption costing, what is the cost of the finished goods inventory on December 31, 2015 B) Under variable costing, what is the cost of the finished goods inventory on December 31, 2015 Please show your work step by step!

 

Paper#4934 | Written in 18-Jul-2015

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