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Managerial Accounting

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Wavy Inc. Absorption vs Variable Costing and Inventoriable Cost

MGRACT-10SUXV

Wavy Inc. produces and sells flags for \$30 each. In the first year of operations, 42,000 flags were produced and 40,000 were sold. The cost per unit showed:

Cost per unit:
Direct materials \$4.00
Direct labor \$5.00
Variable manufacturing costs \$1.20
Sales commissions \$0.50
Fixed manufacturing costs \$0.60
Administrative expenses (all fixed) \$1.30

What is the difference in the ending inventory under absorption versus variable costing methods?

Enter your response as a whole number, without commas or dollar sign. For instance, enter 4505 rather than \$4,505.