lagan, Inc. has collected the following data. (There are no beginning inventories.) Units produced Sales price 700 units $120 per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $50 per unit $12 per unit $9 per unit $17,500 per year Variable selling and administrative costs $4 per unit $18,000 per year Fixed selling and administrative costs What is the ending balance in Finished Goods Inventory using variable costing if 400 units are sold?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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lagan, Inc. has collected the following data. (There are no beginning inventories.)
Units produced
Sales price
700 units
$120 per unit
Direct materials
$50 per unit
Direct labor
Fixed manufacturing overhead
$12 per unit
Variable manufacturing overhead
$9 per unit
$17,500 per year
Variable selling and administrative costs
$4 per unit
$18,000 per year
Fixed selling and administrative costs
What is the ending balance in Finished Goods Inventory using variable costing if 400 units are sold?
OA. $21,300
OB. $15,000
C. $18,600
D. $6,300
Transcribed Image Text:lagan, Inc. has collected the following data. (There are no beginning inventories.) Units produced Sales price 700 units $120 per unit Direct materials $50 per unit Direct labor Fixed manufacturing overhead $12 per unit Variable manufacturing overhead $9 per unit $17,500 per year Variable selling and administrative costs $4 per unit $18,000 per year Fixed selling and administrative costs What is the ending balance in Finished Goods Inventory using variable costing if 400 units are sold? OA. $21,300 OB. $15,000 C. $18,600 D. $6,300
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