Beach Craft Corporation has fixed manufacturing cost of $12 per unit. Consider the three independent cases that follow.
Case A: Absorption- and variable costing net income each totalled $240,000 in a period when the firm produced 18,000 units.
Case B: Absorption-costing net income totalled $320,000 in a period when finished-goods inventory levels rose by 7,000 units.
Case C: Absorption-costing net income and variable-costing net income respectively totalled $220,000 and $250,000 in a period when the beginning finished-goods inventory was 14,000 units.
Required:
A. In Case A, how many units were sold during the period?
B. In Case B, how much income would Beach Craft report under variable costing?
C. In Case C, how many units were in the ending finished-goods inventory?

Question

Quizplus · Accepted Answer

The Answer of Beach Craft Corporation has fixed manufacturing cost of $12 per unit. Consider the three independent cases that follow.
Case A: Absorption- and variable costing net income each totalled $240,000 in a period when the firm produced 18,000 units.
Case B: Absorption-costing net income totalled $320,000 in a period when finished-goods inventory levels rose by 7,000 units.
Case C: Absorption-costing net income and variable-costing net income respectively totalled $220,000 and $250,000 in a period when the beginning finished-goods inventory was 14,000 units.
Required:
A. In Case A, how many units were sold during the period?
B. In Case B, how much income would Beach Craft report under variable costing?
C. In Case C, how many units were in the ending finished-goods inventory?

Beach Craft Corporation Has Fixed Manufacturing Cost of $12 Per