Cinnabar,Inc Requirements:
A)Compute Cinnabar's Unit Product Cost Under Absorption Costing and |

question 90

Essay

Cinnabar,Inc.has provided the following data for the year:
$$\begin{array} { | l | r | l | } \hline \text { Direct materials } & \$ 10 & \text { per unit } \\\hline \text { Direct labor } & \$ 15 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 25,000 & \text { per year } \\\hline \text { Fixed selling and administrative costs } & \$ 15,000 & \text { per year } \\\hline \text { Sales price } & \$ 75 & \text { per unit } \\\hline \text { Beginning Finished Goods Inventory } & 500 & \text { units } \\\hline \text { Units produced } & 5,000 & \text { units } \\\hline \text { Units sold } & 4,500 & \text { units } \\\hline\end{array}$$ Requirements:
a)Compute Cinnabar's unit product cost under absorption costing and variable costing.
b)Prepare income statements for Cinnabar using absorption costing and variable costing.
c)Calculate the balance in Finished Goods Inventory using absorption costing and variable costing.
Assume that the production level,costs,and sales prices were the same in the previous year.

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Definitions:

Stress

A psychological and physical response to external pressures or threats, impacting one's emotional and physiological state.

Road Rage

Aggressive or angry behavior exhibited by motorists, which can include gestures, verbal insults, physical threats, or dangerous driving actions directed toward other drivers in an effort to intimidate or release frustration.

Eustress

Positive stress that is beneficial for the individual, often associated with improved performance and positive feelings.

Poverty-related Stress

The stress experienced due to the hardships and challenges associated with living in poverty.