The following data relate to Jupiter Company, a new corporation, during a period when the firm produced and sold 100,000 units and 90,000 units, respectively:

The company met its original planned production target of 100,000 units. There were no variances during the period, and the firm's selling price is $15 per unit.
Required:
A. What is the cost of Jupiter's end-of-period finished-goods inventory under the variable-costing method?
B. Calculate the company's variable-costing income.
C. Calculate the company's absorption-costing income.

Question

The following data relate to Jupiter Company, a new corporation, during a period when the firm produced and sold 100,000 units and 90,000 units, respectively:
  
The company met its original planned production target of 100,000 units. There were no variances during the period, and the firm's selling price is $15 per unit. 
Required: 
A. What is the cost of Jupiter's end-of-period finished-goods inventory under the variable-costing method?
B. Calculate the company's variable-costing income.
C. Calculate the company's absorption-costing income.

Quizplus · Accepted Answer

The Answer of The following data relate to Jupiter Company, a new corporation, during a period when the firm produced and sold 100,000 units and 90,000 units, respectively:
  
The company met its original planned production target of 100,000 units. There were no variances during the period, and the firm's selling price is $15 per unit. 
Required: 
A. What is the cost of Jupiter's end-of-period finished-goods inventory under the variable-costing method?
B. Calculate the company's variable-costing income.
C. Calculate the company's absorption-costing income.

The Following Data Relate to Jupiter Company, a New Corporation