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Sir I am solving questions for finding profit under absorption costing there is a statement given the level of inventory at the beginning of the year was 1000 units and the company maintained its inventory of finished products at the same level at the end of each four quarters
Sir what does this statement mean
Sir is this related to closing or opening stockIt means that the level of inventory stayed the same, and for that to happen the production units and the sales units must be the same.
question in which it is given
What was the change in the value of finished goods inventory over the period
In question it’s provided 33000 units of product manufactured in a period during which 33950 units were sold for a total revenue of 1391950
Opening inventory of product was. 1700 units the company uses absorption costing
Unit cost are
Variable manufacturing cost 16.30
Fixed manufacturing cost 11.60
Variable selling and administration cost 3.40
Fixed selling and manufacturing cost 7.10Sir which formula is used in calculating change in value of finished goods inventory over the period
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