accounting 5528105 2 – Essay Writers

Ethical & Legal Issues
September 5, 2021
Kim woods | Biology homework help
September 5, 2021

accounting 5528105 2 – Essay Writers

OUtback Store produces Canoes. Information for the first three years of business is as follows:

 
 
 
 
 
 
 
 
 
 
 
 

 
2014
2015
2016
Total
 
 
 
 
 
 
 

Units Sold
5,000
5,000
5,000
15,000
 
 
 
 
 
 
 

Units Produced
5,000
6,000
4,000
15,000
 
 
 
 
 
 
 

Fixed Production Costs
$50,000
$50,000
$50,000
 
 
 
 
 
 
 
 

Variable Production Costs per Unit
$75
$75
$75
 
 
 
 
 
 
 
 

Selling Price
$225
$225
$225
 
 
 
 
 
 
 
 

Fixed Selling and Administrative Expenses
$5,000
$5,000
$5,000
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 

Required:
 
 
 
 
 
 
 
 
 
 
 

Calculate profit and the value of ending inventory for each year using full costing
 
 
 
 
 
 
 

Explain why profit fluctuates from year to year even though the units sold and selling price remains the same
 
 
 
 
 

Calculate profit and the value of ending inventory for each year using variable costing
 
 
 
 
 
 
 

Explain why when using variable costing profit does not fluctuate from year to year
 
 
 
 
 
 
 

 

 
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