Carr Company produces a single product. During the past year, Carr manufactured 43,000 units and sold 29,000 units. Production costs for the year were as follows: Fixed manufacturing overhead $430,000 Variable manufacturing overhead $548,250 Direct labor Direct materials $361,200 $464,400 Sales totaled $2,233,000, variable selling expenses totaled $438,600, and fixed selling and administrative expenses totaled $188,000. There were no units in the beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at: a. $678,059 b. $788,509 c. $587,300 d. $753,997

Carr Company produces a single product. During the past year, Carr manufactured 43,000 units and sold 29,000 units. Production costs for the year were as follows: Fixed manufacturing overhead $430,000 Variable manufacturing overhead $548,250 Direct labor Direct materials $361,200 $464,400 Sales totaled $2,233,000, variable selling expenses totaled $438,600, and fixed selling and administrative expenses totaled $188,000. There were no units in the beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at: a. $678,059 b. $788,509 c. $587,300 d. $753,997

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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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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