Sandy Valley Company has the following selected data for the past year:

There were no units in beginning inventory.
Required:
1. Prepare an income statement for last year using absorption costing.
2. Calculate the value of the ending inventory using absorption costing.
3. Prepare an income statement for last year using variable costing.
4. Calculate the value of the ending inventory using variable costing.

Question

Sandy Valley Company has the following selected data for the past year:
  
There were no units in beginning inventory.
Required:
1. Prepare an income statement for last year using absorption costing.
2. Calculate the value of the ending inventory using absorption costing.
3. Prepare an income statement for last year using variable costing.
4. Calculate the value of the ending inventory using variable costing.

Quizplus · Accepted Answer

The Answer of Sandy Valley Company has the following selected data for the past year:
  
There were no units in beginning inventory.
Required:
1. Prepare an income statement for last year using absorption costing.
2. Calculate the value of the ending inventory using absorption costing.
3. Prepare an income statement for last year using variable costing.
4. Calculate the value of the ending inventory using variable costing.

Sandy Valley Company Has the Following Selected Data for the Past