Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year $ 200 Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the cost of the company's ending inventory? transcript Multiple Choice O $141000 $28.000 $033.000 $75 $ 50 $8 $8
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year $ 200 Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the cost of the company's ending inventory? transcript Multiple Choice O $141000 $28.000 $033.000 $75 $ 50 $8 $8
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations:
transcript
Selling price
Direct materials
Direct labor
Variable manufacturing overhead
Sales commission
Fixed manufacturing overhead
$ 300,000
Using absorption costing, what is the cost of the company's ending inventory?
Multiple Choice
$141000
$28,000
$63.000
Per Unit
$ 200
$75
$ 50
$8
$8
$133,000
Per Year
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