Cinnabar,Inc.has provided the following data for the year:

Requirements:
a)Compute Cinnabar's unit product cost under absorption costing and variable costing.
b)Prepare income statements for Cinnabar using absorption costing and variable costing.
c)Calculate the balance in Finished Goods Inventory using absorption costing and variable costing.
Assume that the production level,costs,and sales prices were the same in the previous year.

Question

Cinnabar,Inc.has provided the following data for the year:
  
Requirements:
a)Compute Cinnabar's unit product cost under absorption costing and variable costing.
b)Prepare income statements for Cinnabar using absorption costing and variable costing.
c)Calculate the balance in Finished Goods Inventory using absorption costing and variable costing.
Assume that the production level,costs,and sales prices were the same in the previous year.

Quizplus · Accepted Answer

The Answer of Cinnabar,Inc.has provided the following data for the year:
  
Requirements:
a)Compute Cinnabar's unit product cost under absorption costing and variable costing.
b)Prepare income statements for Cinnabar using absorption costing and variable costing.
c)Calculate the balance in Finished Goods Inventory using absorption costing and variable costing.
Assume that the production level,costs,and sales prices were the same in the previous year.

Cinnabar,Inc.has Provided the Following Data for the Year