Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept . Cengage XDsit pS 1 Aary dehnapter 9 A6akeAssignment/takeAssignmentMain.do?invoker-&takeAssignmentSessionLocator-assignment-take&inprogress-falseeBookCalculatorPrint ItemInventory Valuation under Absorption Costingand Variable CostingAt the end of the first year of operations, 6,500 units remained in the finished goods inventory. The unit manufacturingcosts during the year were as follows:Direct materials$28.60Direct labor15.10Fixed factory overhead4.90Variable factory overhead4.30Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing conceptand (b) the variable costing concept.$Absorption costingVariable costing5:40 PM^ ) aewOA11/2/2019hpinsprt scendhomef12deletef11fh0fanum&backspacelock

a. Calculate the cost of finished goods inventory under absorption costing concept.

Answered: Cengage X Dsit pS 1 Aary de h napter 9…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept .

Cengage X
Dsit pS 1 Aary de
h
napter 9 A6
akeAssignment/takeAssignmentMain.do?invoker-&takeAssignmentSessionLocator-assignment-take&inprogress-false
eBook
Calculator
Print Item
Inventory Valuation under Absorption Costing
and Variable Costing
At the end of the first year of operations, 6,500 units remained in the finished goods inventory. The unit manufacturing
costs during the year were as follows:
Direct materials
$28.60
Direct labor
15.10
Fixed factory overhead
4.90
Variable factory overhead
4.30
Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept
and (b) the variable costing concept.
$
Absorption costing
Variable costing
5:40 PM
^ ) a
ew
O
A
11/2/2019
hp
ins
prt sc
end
home
f12
delete
f11
fh0
fa
num
&
backspace
lock

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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