ACTG 2020 Chapter Notes - Chapter 8: Total Absorption Costing, Earnings Before Interest And Taxes, Variable Cost

• School: York University
• Department: Accounting
• Course: ACTG 2020
• Professor: Joelle Pokrajac

Document Summary

Raising marks, raising money, raising roofs: during the year just ended, roberts company"s income under absorption costing was ,000 lower than its income under variable costing. The company sold 9,000 units during the year, and its variable costs were per unit, of which was variable selling expense. If production cost is per unit under absorption costing every year, how many units did the company produce during the year? a). Ans: b: if the firm uses variable costing, what is the cost of the ending finished goods. Variable cost per unit = 20+10+15 = * 150,000 = ,750,000. Raising marks, raising money, raising roofs: if the firm uses absorption costing, what is the cost of the ending finished goods. Fixed costs will be expensed under variable costing thereby decreasing income. The fixed cost of unsold units will be deferred under absorption costing, thereby increasing income.