Alpine produces wireless headphones. The selling price per unit is $2,000. There is no beginning inventory. The costs involved in production are as follows: Cost Component Direct Material (per unit) Direct Labor (per unit) Amount ($) 180 195 Variable Manufacturing Overhead (per unit) 125 Total Variable Manufacturing Cost per Unit 500 Fixed Manufacturing Overhead (per year) 650,000 The company also incurs fixed selling and administrative costs: Expense Type Fixed Selling Costs (per year) Amount ($) 225,000 Fixed Administrative Costs (per year) 115,000 During the year, Alpine produces 1,800 units and sells 1,400 units. Using Variable Costing, determine the value of the ending inventory.

Alpine produces wireless headphones. The selling price per unit is $2,000. There is no beginning inventory. The costs involved in production are as follows: Cost Component Direct Material (per unit) Direct Labor (per unit) Amount ($) 180 195 Variable Manufacturing Overhead (per unit) 125 Total Variable Manufacturing Cost per Unit 500 Fixed Manufacturing Overhead (per year) 650,000 The company also incurs fixed selling and administrative costs: Expense Type Fixed Selling Costs (per year) Amount ($) 225,000 Fixed Administrative Costs (per year) 115,000 During the year, Alpine produces 1,800 units and sells 1,400 units. Using Variable Costing, determine the value of the ending inventory.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 25E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...

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