Problem 5-21 (continued)
4. As shown in the reconciliation in part (3) above, $32,000 of fixed
manufacturing overhead cost was deferred in inventory under
absorption costing at the end of May, because $8 of fixed manufacturing
Problem 5-22 (continued)
Advocates of absorption costing would argue, however, that fixed
manufacturing overhead costs attach to units of product as they are
produced, and that such costs do not become expense until the units
