Dart Inc. began operations on January 1, 2019. Dart sells a single product for $10 per unit. During 2019, 50,000 units were produced, and 40,000 units were sold. Costs for 2019 were: Direct materials Direct labor Manufacturing overhead Fixed Portion Variable Portion $0 $2.00 per unit produced $0 $1.50 per unit produced $50,000 $0.75 per unit produced $0.25 per unit sold Selling and administrative expenses $80,000 Under absorption costing the fixed overhead deferred in ending inventory is: a. $10,000. b. $14,000. c. $13,000. d. $9,000.
Dart Inc. began operations on January 1, 2019. Dart sells a single product for $10 per unit. During 2019, 50,000 units were produced, and 40,000 units were sold. Costs for 2019 were: Direct materials Direct labor Manufacturing overhead Fixed Portion Variable Portion $0 $2.00 per unit produced $0 $1.50 per unit produced $50,000 $0.75 per unit produced $0.25 per unit sold Selling and administrative expenses $80,000 Under absorption costing the fixed overhead deferred in ending inventory is: a. $10,000. b. $14,000. c. $13,000. d. $9,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Dart Inc. began operations on January 1, 2019. Dart sells a single product for $10
per unit. During 2019, 50,000 units were produced, and 40,000 units were sold.
Costs for 2019 were:
Direct materials
Direct labor
Manufacturing overhead
Fixed Portion Variable Portion
$0
$2.00 per unit produced
$0
$1.50 per unit produced
$50,000
$0.75 per unit produced
$0.25 per unit sold
Selling and administrative expenses $80,000
Under absorption costing the fixed overhead deferred in ending inventory
is:
a. $10,000.
b. $14,000.
c. $13,000.
d. $9,000.
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