DeAnne Company produces a single product. The company's variable costing income statement for August appears below: DeAnne Company Income statement For the month ended August 31 Sales ($19 per unit) $ 7,98,000 Variable expenses: Variable cost of goods sold 3,78,000 Variable selling expense 84,000 Total variable expenses Contribution margin Fixed expenses: 4,62,000 3,36,000 Fixed manufacturing Fixed selling and administrative Total fixed expenses Net operating income 1,11,000 37,000 1,48,000 $ 1,88,000 The company produced 37,000 units in August and the beginning inventory consisted of 10,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months. The value of the company's inventory on August 31 under the absorption costing method is: a. $45,000 b. $60,000 c. $74,405 d. $70,000

DeAnne Company produces a single product. The company's variable costing income statement for August appears below: DeAnne Company Income statement For the month ended August 31 Sales ($19 per unit) $ 7,98,000 Variable expenses: Variable cost of goods sold 3,78,000 Variable selling expense 84,000 Total variable expenses Contribution margin Fixed expenses: 4,62,000 3,36,000 Fixed manufacturing Fixed selling and administrative Total fixed expenses Net operating income 1,11,000 37,000 1,48,000 $ 1,88,000 The company produced 37,000 units in August and the beginning inventory consisted of 10,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months. The value of the company's inventory on August 31 under the absorption costing method is: a. $45,000 b. $60,000 c. $74,405 d. $70,000

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 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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