he Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production selling and administrative Fixed costs per year: Production Selling and administrative $ 217,210 $ 195,490 ast year, 7,490 units were produced and 7,390 units were sold. There was no beginning Inventory. he carrying value on the balance sheet of the ending Inventory of finished goods under variable costing would be: Multiple Choice O $7,390 less than under absorption costing. $7,390 greater than under absorption costing. $ 33 $ 13 $2,900 less than under absorption costing.
he Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production selling and administrative Fixed costs per year: Production Selling and administrative $ 217,210 $ 195,490 ast year, 7,490 units were produced and 7,390 units were sold. There was no beginning Inventory. he carrying value on the balance sheet of the ending Inventory of finished goods under variable costing would be: Multiple Choice O $7,390 less than under absorption costing. $7,390 greater than under absorption costing. $ 33 $ 13 $2,900 less than under absorption costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Southern Corporation manufactures a single product and has the following cost structure:
variable costs per unit:
Production
selling and administrative
Fixed costs per year:
Production
selling and administrative
Multiple Choice
Last year, 7,490 units were produced and 7,390 units were sold. There was no beginning Inventory.
The carrying value on the balance sheet of the ending Inventory of finished goods under variable costing would be:
$7,390 less than under absorption costing.
$7,390 greater than under absorption costing.
$2,900 less than under absorption costing.
$ 33
$ 13
the same as absorption costing.
$ 217,210
$ 195,490
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