Belle Company reports the following information for the current year. All beginning inventory amount equaled $0 this year. Units produced this year Units sold this year Direct materials. Direct labor $ 22 per unit $ 24 per unit Variable overhead $ 3 per unit Fixed overhead $ 490,000 in total Given Belle Company's data, compute cost of finished goods in inventory under absorption costing. 70,000 units 42,000 units
Belle Company reports the following information for the current year. All beginning inventory amount equaled $0 this year. Units produced this year Units sold this year Direct materials. Direct labor $ 22 per unit $ 24 per unit Variable overhead $ 3 per unit Fixed overhead $ 490,000 in total Given Belle Company's data, compute cost of finished goods in inventory under absorption costing. 70,000 units 42,000 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Belle Company reports the following information for the current year. All beginning inventory amounts
equaled $0 this year.
Units produced this year
Units sold this year
Direct materials
Direct labor
Variable overhead
Fixed overhead
70,000 units
42,000 units
$ 22 per unit
$24 per unit
$3 per unit
$ 490,000 in total
Given Belle Company's data, compute cost of finished goods in inventory under absorption costing.
Multiple Choice
O
O
O
O
$1,568,000
O
$2,052,000
O
$1,231,200
During its first year of operations, the McCormick Company incurred the following manufacturing costs:
Direct materials
$7 per unit
Direct labor
$5 per unit
Variable overhead
$6 per unit
Fixed overhead
$ 279,000 per year
о
о
$744,800
The company produced 31,000 units, and sold 20,500 units, leaving 10,500 units in inventory at year-end.
What is the value of ending inventory under absorption costing?
$1,117,200
Multiple Choice
$189,000
$283,500
$94,500
$279,000
$468,000
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