Beach Corporation, which produces a single product, budgeted the following costs for its first year of operations. These costs are based on a budgeted volume of 30,000 towels produced and sold: Direct materials $96,000 $48,000 $72,000 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $60,000 $12,000 $36,000 During the first year of operations, Beach Corporation actually produced 30,000 towels but only sold 24,000 towels. Actual costs did not fluctuate from the cost behavior patterns described above. The 24,000 towels were sold for $16 per towel. Assume that direct labor is a variable cost. What is the total cost that would be assigned to Beach Corporation's finished goods inventory at the end of the first year of operations Under variable costing?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Beach Corporation, which produces a single product, budgeted the following costs for its first year of operations. These costs are based on a budgeted volume of 30,000
towels produced and sold:
$96,000
$48,000
$72,000
$60,000
$12,000
$36,000
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
During the first year of operations, Beach Corporation actually produced 30,000 towels but only sold 24,000 towels. Actual costs did not fluctuate from the cost behavior
patterns described above. The 24,000 towels were sold for $16 per towel. Assume that direct labor is a variable cost.
What is the total cost that would be assigned to Beach Corporation's finished goods inventory at the end of the first year of operations Under variable costing?
Transcribed Image Text:Beach Corporation, which produces a single product, budgeted the following costs for its first year of operations. These costs are based on a budgeted volume of 30,000 towels produced and sold: $96,000 $48,000 $72,000 $60,000 $12,000 $36,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses During the first year of operations, Beach Corporation actually produced 30,000 towels but only sold 24,000 towels. Actual costs did not fluctuate from the cost behavior patterns described above. The 24,000 towels were sold for $16 per towel. Assume that direct labor is a variable cost. What is the total cost that would be assigned to Beach Corporation's finished goods inventory at the end of the first year of operations Under variable costing?
Multiple Choice
$45,600
$55,200
$43,200
$64,800
Transcribed Image Text:Multiple Choice $45,600 $55,200 $43,200 $64,800
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