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ACCT 346 Week 3 Quiz (2 Sets)
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ACCT 346 Week 4 Homework Assignment
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1.MountainAir Company has the following selected data for the past
year:
Units sold during year 30,000
Units produced during year 45,000
Units in ending inventory
15,000
Variable manufacturing cost per unit $ 4.50
Fixed manufacturing overhead (in total)
$ 20,250
Selling price per unit $ 12.00
Variable selling and administrative expense per unit $ 1.00
Fixed selling and administrative expenses (in total) $ 4,000
There were no units in beginning inventory.
Required:
a. Prepare an income statement for last year using absorption (full)
costing.
b. Calculate the total value of the ending inventory using absorption (full)
costing.