Information from Jacob Perez Company’s records is available as follows for the year ended December 31, 2014:
No work-in-process inventories existed at the beginning or end of 2014.
1. What would be Perez’s finished goods inventory and cost of goods sold under the variable (direct) costing method at December 31, 2014?
2. Under the absorption costing method, what would Perez’s operating income be?
3. Calculate Jacob Perez Company’s cost of goods sold and ending inventory under absorption costing.
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