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:

Regulation S-K

A regulation under the U.S. Securities Act that outlines reporting requirements for various SEC filings used by public companies.

Staff Accounting Bulletins (SABs)

Staff Accounting Bulletins (SABs) are issued by the SEC to provide guidance on accounting practices and disclosure requirements.

Non-affiliates

Individuals or entities that are independent of, and not closely related or connected to, another entity or its managerial personnel.

Stock Held

Shares of a company that are owned by an individual or entity, representing a portion of ownership in that company.