Question

Vermillion BBQ produces stainless steel propane gas grills. The company has been in operation for 3 years, and sales have declined each year due to increased competition. The following information is available:

Units sold		30,500		27,500		26,100		84,100
Units produced		30,500		30,500		23,100		84,100
Fixed production costs		$30,164,500		$30,164,500		$30,164,500
Variable production costs per unit		$1,020		$1,020		$1,020
Selling price per unit		$2,551		$2,551		$2,551
Fixed selling and administrative expense		$377,900		$377,900		$377,900

Calculate profit and the value of ending inventory for each year under full costing. (Round cost per unit and final answer to 0 decimal places, e.g. 15.)

                                    2017    2018    2019

Net Profit                   ?          ?          ?

Ending Inventory      ?          ?          ?

I have no idea where to start, any information is greatly appreciated. Thanks!

Answer 1