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I am seeking your helping in this question
25000 unit of a company single product are produced in a period during which 28000 units are sold. opening inventory was 7000 units;
Unit cost of the product are
Direct Cost $16.20
Fixed production 0verheads $ 7.60
fixed non-production overhead 2.90What is the difference in the profit between absorption and marginal costing?
thank youI assume that you have watched my lectures, in which case you will know that the difference in the profits is equal to the change in inventory multiplied by the fixed production overheads per unit.
You know the change in inventory (it falls by 3,000 units) and you know the fixed production overheads per unit (7.60).
Yes I did Looked at it . Thank you. That was exactly what I did . My answer was $22, 800.
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