- ending inventory for Steele Ltd. Using the variable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Figure 4
Steele Ltd. has the following information for January, February, and March 2011:
Units produced
Units sold
January
10,000
7,000
February
10,000
March
10,000
8,500
10,500
Production costs per unit (based on 10,000 units) are as follows:
Direct materials
GHS12
Direct labour
Variable factory overhead
Fixed factory overhead
Variable selling and admin. expenses
Fixed selling and admin. expenses
4
10
4
There were no beginning inventories for January 2011, and all units were sold for GHS50. Costs
are stable over the three months.
21. Refer to Figure 4. What is the January ending inventory for Steele Ltd. Using the variable
costing method?
a. GHS260,000
b. GHS78,000
c. GHS108,000
d. GHS90,000
Transcribed Image Text:Figure 4 Steele Ltd. has the following information for January, February, and March 2011: Units produced Units sold January 10,000 7,000 February 10,000 March 10,000 8,500 10,500 Production costs per unit (based on 10,000 units) are as follows: Direct materials GHS12 Direct labour Variable factory overhead Fixed factory overhead Variable selling and admin. expenses Fixed selling and admin. expenses 4 10 4 There were no beginning inventories for January 2011, and all units were sold for GHS50. Costs are stable over the three months. 21. Refer to Figure 4. What is the January ending inventory for Steele Ltd. Using the variable costing method? a. GHS260,000 b. GHS78,000 c. GHS108,000 d. GHS90,000
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