A company manufactures a single product. Unit costs are: $/Unit Variable production cost 14.75 Fixed production 8.30 Variable selling 2.60 Fixed selling 5.45 400,000 units of the product were manufactured in a period, during which 394,000 units were sold. There was no inventory of the product at the beginning of the period. Required: 1) Use Marginal costing to calculate the total value of the finished goods inventory at the end of the period.
A company manufactures a single product. Unit costs are: $/Unit Variable production cost 14.75 Fixed production 8.30 Variable selling 2.60 Fixed selling 5.45 400,000 units of the product were manufactured in a period, during which 394,000 units were sold. There was no inventory of the product at the beginning of the period. Required: 1) Use Marginal costing to calculate the total value of the finished goods inventory at the end of the period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A company manufactures a single product.
Unit costs are: $/Unit
|
Variable production cost 14.75 |
Fixed production 8.30 |
|
Variable selling 2.60 |
Fixed selling 5.45 |
400,000 units of the product were manufactured in a period, during which 394,000 units were sold. There was no inventory of the product at the beginning of the period.
Required:
1) Use Marginal costing to calculate the total value of the finished goods inventory at the end of the period.
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