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1. MountainAir Company has the following selected data for the past year: Units sold during year 30,000 Units produced during year 45,000 Units in ending inventory 15,000 Variable manufacturing cost per unit $4.50 Fixed manufacturing overhead (in total) $20,250 Selling price per unit $12.00 Variable selling and administrative expense per unit $1.00 Fixed selling and administrative expenses (in total) $4,000 There were no units in beginning inventory. Required: 1a. Prepare an income statement for last year using absorption costing. 1b. Calculate the value of the ending inventory using absorption costing. 1c. Prepare an income statement for last year using variable costing. 1d. Calculate the value of the ending inventory using variable costing.
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