Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 6,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $40.40 Direct labor 18.70 Fixed factory overhead 5.80 Variable factory overhead 5.10 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing $fill in the blank 1 Variable costing $fill in the blank 2
Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 6,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $40.40 Direct labor 18.70 Fixed factory overhead 5.80 Variable factory overhead 5.10 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing $fill in the blank 1 Variable costing $fill in the blank 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the first year of operations, 6,500 units remained in the finished goods inventory. The unit
Direct materials | $40.40 | |
Direct labor | 18.70 | |
Fixed factory |
5.80 | |
Variable factory overhead | 5.10 |
Determine the cost of the finished goods inventory reported on the
Absorption costing | $fill in the blank 1 |
Variable costing | $fill in the blank 2 |
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