Abigail Corporation produces widgets. In 2008, its first year of operations, the company produced 100,000 widgets and sold 90,000 widgets. The selling price is $70 per widget.
The production costs are
Direct Materials $10 per widget
Direct Labor $5 per widget
Variable Manufacturing Overhead $12 per widget
Fixed Manufacturing Overhead $600,000 in total
The company also had fixed selling costs of $100,000 and fixed administration costs of $150,000
Answer the following questions:
1. How many widgets are in the inventory at the end of the year?
2. Under the variable costing method, are fixed overhead costs a product or period cost?
3. Under the full costing method, are fixed overhead costs a product or period cost?
4. Under the full costing method, are fixed selling costs a product or period cost?
5. What is the product cost of one widget using the full costing method?
6. What is the product cost of one widget using the variable costing method?
7. What is the cost of goods sold using the full costing method?
8. What is the variable cost of goods sold?
9. What is the dollar value of the widget inventory at the end of the year using full costing?
10. What is the dollar value of the widget inventory at the end of the year using variable costing?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
