Beech Company produces a single product. The company has 50,000 units in its beginning inventory. Beech's variable production costs during the year were $10 per unit and fixed manufacturing overhead costs were applied at $30 per unit (which was the same as last year). The company's net operating income is $120,000 lower under variable costing than it is under absorption costing; and the company uses FIFO and closes any over- or under-applied overhead directly to cost of goods sold. Given these facts, what was the number of units of product in ending inventory

Closing inventory = 54,000 units

Explanation:

The difference between profit under variable costing and under absorption costing is simply the value of the change in inventory.

Usually, a decrease in inventory would cause profit under absorption costing to be lower . This is so because cost of goods sold would become higher leading to a lower profit

Difference in profit = POAR × change inventory

POAR- fixed overhead cost per unit- $10,

Difference in profit - $120,000

let the change inventory be y

120,000 = 30 ×   y

y= 120,000/30

y = 4000 units

Inventory at the end = opening inventory  + change inventory

                               = 50,000 + 4000  

                               = 54,000 units

Note; An increase in inventory will produce a higher profit using absorption costing. Hence, we added the change inventory to the opening inventory, to reflect an increase in inventory

b. take periodic breaks and alternate between tasks.  

will increase work efficiency, and avoid health issues.