Hobbies Inc. has the following information related to the manufacture and sale of credit items for Year 1 and Year 2: Year 1 Year 2 Production unit Sales price per unit Units sold Direct materials per unit 3,000 2,750 $ 70 $ 70 2,250 3,200 $ 10 $ 10 Direct labor per unit Variable manufacturing overhead per unit $6 $6 $3 $ 3 Fixed manufacturing overhead costs $ 55,000 $ 55,000 Variable selling and admin. costs per unit $ 2 $2 Fixed selling and admin. costs $ 20,000 $ 20,000 There was no beginning inventory in Year 1. Using variable costing, what is the value of ending inventory in Year 2? A. $1,350 B. $8,550 C. $5,700 D. $900

Hobbies Inc. has the following information related to the manufacture and sale of credit items for Year 1 and Year 2: Year 1 Year 2 Production unit Sales price per unit Units sold Direct materials per unit 3,000 2,750 $ 70 $ 70 2,250 3,200 $ 10 $ 10 Direct labor per unit Variable manufacturing overhead per unit $6 $6 $3 $ 3 Fixed manufacturing overhead costs $ 55,000 $ 55,000 Variable selling and admin. costs per unit $ 2 $2 Fixed selling and admin. costs $ 20,000 $ 20,000 There was no beginning inventory in Year 1. Using variable costing, what is the value of ending inventory in Year 2? A. $1,350 B. $8,550 C. $5,700 D. $900

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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