A manufacturer reports the following costs to produce 27,000 units in its first year of operations: direct materials, $27 per unit, direct labor, $23 per unit, variable overhead, $243,000, and fixed overhead, $ 378,000. Of the 27,000 units produced, 25, 900 were sold, and 1,100 remain in inventory at year-end. Under variable costing, the value of the inventory is: Multiple Choice $55,000. $64,900. $80, 300. $70,400. $ 39,600.

A manufacturer reports the following costs to produce 27,000 units in its first year of operations: direct materials, $27 per unit, direct labor, $23 per unit, variable overhead, $243,000, and fixed overhead, $ 378,000. Of the 27,000 units produced, 25, 900 were sold, and 1,100 remain in inventory at year-end. Under variable costing, the value of the inventory is: Multiple Choice $55,000. $64,900. $80, 300. $70,400. $ 39,600.

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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