A company produces a single product. Variable production costs are $13.40 per unit and variable selling and administrative expenses are $4.40 per unit. Fixed manufacturin overhead totals $50,000 and fixed selling and administration expenses total $54,000. Assuming a beginning inventory of zero, production of 5,400 units and sales of 4,30- units, the dollar value of the ending inventory under variable costing would be: Multiple Choice O $14,740 $24,640 $19,580 $9,900

A company produces a single product. Variable production costs are $13.40 per unit and variable selling and administrative expenses are $4.40 per unit. Fixed manufacturin overhead totals $50,000 and fixed selling and administration expenses total $54,000. Assuming a beginning inventory of zero, production of 5,400 units and sales of 4,30- units, the dollar value of the ending inventory under variable costing would be: Multiple Choice O $14,740 $24,640 $19,580 $9,900

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

A company produces a single product. Variable production costs are $13.40 per unit and variable selling and administrative expenses are $4.40 per unit. Fixed manufacturing
overhead totals $50,000 and fixed selling and administration expenses total $54,000. Assuming a beginning inventory of zero, production of 5,400 units and sales of 4,300
units, the dollar value of the ending inventory under variable costing would be:
Multiple Choice
$14,740
$24,640
$19,580
$9,900

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