Carr Company produces a single product. During the past year, Carr manufactured 26,160 units and sold 20,900 units. Production costs for the year were as follows: Direct materials $188,352 Direct labor $112,488 Variable manufacturing overhead $224,976 Fixed manufacturing overhead $470,880 Sales were $971,850 for the year, variable selling and administrative expenses were $108,680, and fixed selling and administrative expenses were $190,968. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at: a) $227,906 b) $270,406 c) $200,406 d) $261,906

Carr Company produces a single product. During the past year, Carr manufactured 26,160 units and sold 20,900 units. Production costs for the year were as follows: Direct materials $188,352 Direct labor $112,488 Variable manufacturing overhead $224,976 Fixed manufacturing overhead $470,880 Sales were $971,850 for the year, variable selling and administrative expenses were $108,680, and fixed selling and administrative expenses were $190,968. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at: a) $227,906 b) $270,406 c) $200,406 d) $261,906

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 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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