Spock Company Has Provided the Following Information for the Year $\quad 8,400$

question 151

Essay

Spock Company has provided the following information for the year ended April 30, 20X5:
Unitssold $\quad 8,400$ units
Unitsproduced $\quad$ 11,200 units
Directlabor $\quad$$\$ 9 9 , 6 0 0$
Directmaterialsused $\quad$$\$ \$ 5 5 , 0 0 0$
Fixed manufacturingoverhead $\quad$ $\$ 52,640$
Variablemanufacturingoverhead $\quad$$\$70,200$
Sellingand administrativeexpenses (allfixed) $\$ 64,800$
Beginninginventories $\quad$$\quad$ none
Contributionmargin $\$ 71,200$
Direct-materialsinventory,April30 $\quad$$\$ 19,920$
WIP, April $30 \quad$$\quad$ none Required:
a. What is the ending finished- goods inventory cost under variable costing?
b. What is the ending finished- goods inventory cost under absorption costing?

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Definitions:

Net Income

The profit a company has after all expenses, taxes, and costs have been subtracted from total revenue.

Foreign Currency Translation

Foreign Currency Translation is the process of converting the financial statements of a company into a single currency when it has operations in multiple currencies.

Property, Plant, And Equipment

Assets in the form of land, buildings, and machinery, acquired for operations and not for resale.

Preferred Stock

Preferred stock is a class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically paying dividends before common shares and having priority in the event of a liquidation.