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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c4006ef-de4b-4f82-aa94-01e0390f20c4%2Fcdd17c08-f64f-42be-b497-05602af574da%2Fzgh2prl_processed.jpeg&w=3840&q=75)
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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