A manufacturer reports the following costs to produce 25,000 units in its first year of operations: direct materials, $25 per unit, direct labor, $21 per unit, variable overhead, $250,000, and fixed overhead, $325,000. Of the 25,000 units produced, 23,700 were sold, and 1,300 remain in inventory at year-end. Under variable costing, the value of the inventory is: Multiple Choice $59,800. $72,800. $89,700. $76,700. $45,500.

A manufacturer reports the following costs to produce 25,000 units in its first year of operations: direct materials, $25 per unit, direct labor, $21 per unit, variable overhead, $250,000, and fixed overhead, $325,000. Of the 25,000 units produced, 23,700 were sold, and 1,300 remain in inventory at year-end. Under variable costing, the value of the inventory is: Multiple Choice $59,800. $72,800. $89,700. $76,700. $45,500.

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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