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Question 4 Incorrect Mark 0.00 out of 1.00 P Flag question Variable and Absorption Costing Pyne Company produces a single pro
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Answer #1

In the given case, profit under variable costing shall be greater if beginning inventory is higher than ending inventory.

The profit is higher, so, beginning inventory is certainly higher than ending inventory in the given question

Units in beginning inventory = Ending inventory units + Difference in profit/ fixed overhead per unit

                                                        = 60,000 + 135,000/25

                                                        = 65,400 units

                               

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