The Following Data Relate to Horatio, Inc There Were No Variances During the Period

question 43

Essay

The following data relate to Horatio, Inc., a new company: $$\begin{array} { l l } \text { Planned and actual production } & 200,000 \text { units } \\\text { Sales at } \$ 48 \text { per unit } & 170,000 \text { units } \\\text { Manufacturing costs: } & \\\quad \text { Variable } & \$ 18 \text { per unit } \\\quad \text { Fixed } & \$ 840,000 \\\text { Selling and administrative costs: } & \\\quad \text { Variable } & \$ 7 \text { per unit } \\\quad \text { Fixed } & \$ 925,000\end{array}$$
There were no variances during the period.
Required:
A. Determine the number of units in the ending finished-goods inventory.
B. Calculate the cost of the ending finished-goods inventory under (1) variable costing and (2) absorption costing.
C. Determine the company's variable-costing income.
D. Determine the company's absorption-costing income.

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Definitions:

Cerebral Area

A region of the brain responsible for various functions including thought, memory, emotion, and sensory processing.

Optic Nerve

A paired nerve that transmits visual information from the retina to the brain.

External Auditory Canal

The tube that runs from the outer ear to the eardrum, plays a role in directing sound waves from the environment to the tympanic membrane.

Eardrum

The eardrum, also known as the tympanic membrane, is a thin membrane that separates the external ear from the middle ear and vibrates in response to sound waves.