Harris Corporation produces a single product. Last year, Harris manufactured 37,620 units and sold 31,400 units. Production costs for the year were as follows: Fixed manufacturing overhead $396,450 Variable manufacturing overhead $259,560 Direct labor Direct materials $143,964 $235,224 Sales were $1,312,650, for the year, variable selling and administrative expenses were $404,950, and fixed selling and administrative expenses were $375,562. There was no beginning inventory Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at: A. $171,174.40 B. $248,628.52 C. $257,128.87 D. $187,128.50

Harris Corporation produces a single product. Last year, Harris manufactured 37,620 units and sold 31,400 units. Production costs for the year were as follows: Fixed manufacturing overhead $396,450 Variable manufacturing overhead $259,560 Direct labor Direct materials $143,964 $235,224 Sales were $1,312,650, for the year, variable selling and administrative expenses were $404,950, and fixed selling and administrative expenses were $375,562. There was no beginning inventory Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at: A. $171,174.40 B. $248,628.52 C. $257,128.87 D. $187,128.50

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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