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Income Statements Variable and Absorption Costing The following information pertains to Vladamir Inc for last year: Beginning inventory

Income Statements, Variable and Absorption Costing The following information pertains to Vladamir, Inc., for last year: Beginning inventory, units 1,320Units produced 100,000Units sold 101,000Variable costs per unit: Direct materials $8.00Direct labor $9.50Variable overhead $1.25Variable selling expenses $2.00Fixed costs per year: Fixed overhead $234,000Fixed selling and administrative expenses $236,000 There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory?2. Without preparing an income statement, indicate what the difference will be between vari-able-costing income and absorption-costing income.3. Assume the selling price per unit is $29. Prepare an income statement using (a) variable costing and (b) absorption costing.

Apr 03 2020 View more View Less

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