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The following information relates to Jarden Industries for fiscal 2011, the company's first year of operation:
Units produced........... $120,000Units sold............. $100,000Units in ending inventory ........ $20,000Fixed manufacturing overhead.......$720,000
Required:
a. Calculate the amount of fixed manufacturing overhead that would be expensed in 2011 using full costing.b. Calculate the amount of fixed manufacturing overhead that would be expensed in 2011 using variable costing.c Calculate the amount of fixed manufacturing overhead that would be included in ending inventory under full costing and reconcile it to the difference between parts a and b.
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