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

question 132

Essay

Cinnabar,Inc.has provided the following data for the year:
$$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 10 \text { per unit } \\\hline \text { Direct labor } & \$ 15 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 25,000 \text { per year } \\\hline \text { Fixed selling and administrative costs } & \$ 15,000 \text { per year } \\\hline \text { Sales price } & \$ 75 \text { per unit } \\\hline \text { Beginning Finished Goods Inventory } & 500 \text { units } \\\hline \text { Units produced } & 5,000 \text { units } \\\hline \text { Units sold } & 4,500 \text { units } \\\hline\end{array}$$ 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:

Sequela

A condition that is the consequence of a previous disease or injury.

Seventh Characters

A term often used in medical coding to provide additional information about the encounter or the phases of care.

Initial Encounter

The first time a patient meets with a healthcare provider for treatment or evaluation of a particular condition or health concern.

Malunion

A fractured bone that did not heal correctly; healing of bone that was not in proper position or alignment.