Henderson Manufacturing produces a specialized motor component. Below is Henderson's cost structure: Cost Type Variable Cost per Unit Total Fixed Cost for the ($) $135 Administrative $40 Manufacturing Cost Selling & Expense Year ($) $1,250,000 $720,000 In its first year of operations, Henderson produced 90,000 components but only sold 85,000. What is the total cost assigned to Henderson's finished goods inventory at the end of the first year under variable costing?

Henderson Manufacturing produces a specialized motor component. Below is Henderson's cost structure: Cost Type Variable Cost per Unit Total Fixed Cost for the ($) $135 Administrative $40 Manufacturing Cost Selling & Expense Year ($) $1,250,000 $720,000 In its first year of operations, Henderson produced 90,000 components but only sold 85,000. What is the total cost assigned to Henderson's finished goods inventory at the end of the first year under variable costing?

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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