Production and sales for Period 3 was as follows: Period 3 Units Sales 550 Production 450 The opening inventory in Period 3 was 100 units. Calculate the profit for Period 3 based on absorption costing principles.
【参考答案及解析】
Opening inventory is period 3 = 100 units. Closing inventory units = opening inventory units + production units – sales units. Closing inventory = 100 + 450 – 550 = 0. So inventory has decreased during the period and therefore marginal costing will report a higher profit than absorption costing. Absorption costing profit = $7,750 – (100 × $12) = $6,550. Absorption costing operating statement
Opening inventory is period 3 = 100 units. Closing inventory units = opening inventory units + production units – sales units. Closing inventory = 100 + 450 – 550 = 0. So inventory has decreased during the period and therefore marginal costing will report a higher profit than absorption costing. Absorption costing profit = $7,750 – (100 × $12) = $6,550. Absorption costing operating statement