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1) Doon Company incurred the following costs while producing 560 units: direct materials, $9 per unit; direct labor, $30 per unit; variable manufacturing overhead, $14 per unit; total fixed manufacturing overhead costs, $11,200; variable selling and administrative costs, $3 per unit; total fixed selling and administrative costs, $7,280. There are no beginning inventories. What is the ending balance in Finished Goods Inventory using variable costing if 400 units are sold?

1) Doon Company incurred the following costs while producing 560 units: direct materials, $9 per unit; direct labor, $30 per unit; variable manufacturing overhead, $14 per unit; total fixed manufacturing overhead costs, $11,200; variable selling and administrative costs, $3 per unit; total fixed selling and administrative costs, $7,280. There are no beginning inventories. What is the ending balance in Finished Goods Inventory using variable costing if 400 units are sold?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1) Doon Company incurred the following costs while producing 560 units: direct materials, $9 per unit; direct labor, $30 per unit; variable manufacturing overhead, $14 per unit; total fixed manufacturing overhead costs, $11,200; variable selling and administrative costs, $3 per unit; total fixed selling and administrative costs, $7,280. There are no beginning inventories. What is the ending balance in Finished Goods Inventory using variable costing if 400 units are sold?
Transcribed Image Text:1) Doon Company incurred the following costs while producing 560 units: direct materials, $9 per unit; direct labor, $30 per unit; variable manufacturing overhead, $14 per unit; total fixed manufacturing overhead costs, $11,200; variable selling and administrative costs, $3 per unit; total fixed selling and administrative costs, $7,280. There are no beginning inventories. What is the ending balance in Finished Goods Inventory using variable costing if 400 units are sold?
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