HairNeat Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2016 and 2017 was 3,000 units. There was no beginning inventory in 2016. The following data summarized the 2016 and 2017 operations: 2016 2017 Units sold 2,500 3,200 Units produced 3,000 3,000 Costs: Variable manufacturing costs per unit $0.65 $0.65 Fixed factory overhead $1,290 $1,290 Variable marketing per unit $0.80 $0.80 Fixed Selling and Administrative $650 $650 What is the value of closing inventory in 2016 under absorption costing? Question 9 options: 1) $325 2) $540 3) $195 4) $324
HairNeat Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2016 and 2017 was 3,000 units. There was no beginning inventory in 2016. The following data summarized the 2016 and 2017 operations: 2016 2017 Units sold 2,500 3,200 Units produced 3,000 3,000 Costs: Variable manufacturing costs per unit $0.65 $0.65 Fixed factory overhead $1,290 $1,290 Variable marketing per unit $0.80 $0.80 Fixed Selling and Administrative $650 $650 What is the value of closing inventory in 2016 under absorption costing? Question 9 options: 1) $325 2) $540 3) $195 4) $324
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
HairNeat Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2016 and 2017 was 3,000 units. There was no beginning inventory in 2016. The following data summarized the 2016 and 2017 operations:
2016 | 2017 | |
Units sold | 2,500 | 3,200 |
Units produced | 3,000 | 3,000 |
Costs: | ||
Variable manufacturing costs per unit | $0.65 | $0.65 |
Fixed factory |
$1,290 | $1,290 |
Variable marketing per unit | $0.80 | $0.80 |
Fixed Selling and Administrative | $650 | $650 |
What is the value of closing inventory in 2016 under absorption costing?
Question 9 options:
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