Business, 05.05.2020 04:25 105001038

MicroDecor produces stylish microwave ovens. Each unit sells for $620. During 20X7, the company produced 23,000 units, and sold 21,000 units. Beginning inventory contained a total of 3,200 units. Production and SG&A costs have been stable for many years. Assume the per unit costs in beginning and ending inventory are identical. Per unit cost information follows: Direct materials cost $160 Direct labor cost 110 Variable factory overhead 85 Variable SG&A 60 Annual fixed manufacturing overhead is $245,000. Annual fixed SG&A totals $1,500,000. (a) Determine the number of units in ending inventory, and calculate the total carrying cost using both variable and absorption costing. (b) Calculate 20X7 net income using variable costing. (c) Calculate 20X7 net income using absorption costing.

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MicroDecor produces stylish microwave ovens. Each unit sells for $620. During 20X7, the company prod...

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