7.

6)
ABSORPTION COSTING :
$
D MATERIAL 50
D. LABOR 80
V MOH 20
$150
(+) F MOH 35
UNIT P COST $185

ABSORPTION COSTING :

$ $
SALES ( 19000×$185) 3990000
(-) COGS :
BEGIN INV 0
(+) COGM (20000×$185) 3700000
G.AVAILABLE FOR SALE 3700000
(-) END INV (1000×$185) 185000
COGS 3515000
G MARGIN 475000
SELLING & ADM EXPENSES :
F S/A 285000
V S/A 190000
475000
NOI 0

7.9)
1) VARIABLE COSTING :
$
D MATERIAL 5
D LABOR 6
V MOH 1
UNIT P COST $12

VARIABLE COSTING :

$ $
SALES (35000×$25) 875000
VE:
VCOGS;
BEGIN INV 0
(+) VMOHC (40000×$12) 480000
G AVAILABLE FOR SALE 480000
(-) END INV (5000×$12) 60000
VCOGS 420000
V S/E (35000×$12) 70000
 490000
CM 385000
F.E:
F MOH 160000
F S/E 210000
370000
NOI 15000

2) $
VC NOI 15000
(+) F MOH DEFFERED IN INV UNDER AC (5000×$4) 20000
AC NOI 35000