During the first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials $4 per unit Direct labor $2 per unit Variable overhead $3 per unit Fixed overhead $ 1,60,000 The company produced 20,000 units, and sold 15,000 units, leaving 5,000 units in inventory at the year-end. What is the value of ending inventory under variable costing? a. $45,000 b. $85,000 c. $40,000 d. $160,000

During the first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials $4 per unit Direct labor $2 per unit Variable overhead $3 per unit Fixed overhead $ 1,60,000 The company produced 20,000 units, and sold 15,000 units, leaving 5,000 units in inventory at the year-end. What is the value of ending inventory under variable costing? a. $45,000 b. $85,000 c. $40,000 d. $160,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

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