During November, 35,650 units were manufactured and 8,710 units were in beginning inventory. Variable production costs per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior months. The value of the company's inventory on November 30 under absorption costing would be:
During November, 35,650 units were manufactured and 8,710 units were in beginning inventory. Variable production costs per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior months. The value of the company's inventory on November 30 under absorption costing would be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Columbia Corporation produces a single product. The company's variable costing income statement for November appears below:
Columbia Corporation
Income Statement
For the Month ended November 30
Sales ($16 per unit)
Variable expenses:
Variable cost of goods sold
Variable selling expense
Total variable expenses
Contribution margin
Fixed expenses:
Manufacturing
$ 665,600
332,800
124,800
457,600
208,000
106,950
Selling and administrative
Total fixed expenses
178,250
Net operating income
$ 29,750
During November, 35,650 units were manufactured and 8,710 units were in beginning inventory. Variable production costs per unit,
total fixed manufacturing expenses, and the number of units produced were the same in prior months.
The value of the company's inventory on November 30 under absorption costing would be:
71,300
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