Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year $11 per unit In addition, the company has selling and administrative costs: 15 per unit 12 per unit $448,000 Fixed selling costs per year $175,000 Fixed administrative costs per year 75,000 Variable selling and admin costs per year $6 per unit Value of ending inventory During the year, Nader produced 28,000 readers and sold 29,400. Beginning inventory totaled 1,800 units. Assume the same unit costs in all years. What is the value of ending inventory using full costing? $
Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year $11 per unit In addition, the company has selling and administrative costs: 15 per unit 12 per unit $448,000 Fixed selling costs per year $175,000 Fixed administrative costs per year 75,000 Variable selling and admin costs per year $6 per unit Value of ending inventory During the year, Nader produced 28,000 readers and sold 29,400. Beginning inventory totaled 1,800 units. Assume the same unit costs in all years. What is the value of ending inventory using full costing? $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Direct material
Direct labor
ces e-readers that it sells for $80 each. Costs involved in production are:
Variable manufacturing overhead
Fixed manufacturing overhead per year
$11 per unit
15 per unit
12 per unit
$448,000
In addition, the company has selling and administrative costs:
Fixed selling costs per year
$175,000
Fixed administrative costs per year
75,000
Variable selling and admin costs per year $6 per unit
During the year, Nader produced 28,000 readers and sold 29,400. Beginning inventory totaled 1,800 units. Assume the same unit
costs in all years. What is the value of ending inventory using full costing?
Value of ending inventory $
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