Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for last year were as follows: Direct materials $25,000 Direct labor 35,000 Variable factory overhead 12,000 Fixed factory overhead 37,000 Variable selling expense 9,000 Fixed selling expense 7,500 Fixed administrative expense 15,500 Assuming that beginning inventory was zero, what is the value of ending inventory under variable costing? Group of answer choices
Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for last year were as follows: Direct materials $25,000 Direct labor 35,000 Variable factory overhead 12,000 Fixed factory overhead 37,000 Variable selling expense 9,000 Fixed selling expense 7,500 Fixed administrative expense 15,500 Assuming that beginning inventory was zero, what is the value of ending inventory under variable costing? Group of answer choices
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for last year were as follows:
|
Direct materials |
$25,000 |
|
Direct labor |
35,000 |
|
Variable factory overhead |
12,000 |
|
Fixed factory overhead |
37,000 |
|
Variable selling expense |
9,000 |
|
Fixed selling expense |
7,500 |
|
Fixed administrative expense |
15,500 |
Assuming that beginning inventory was zero, what is the value of ending inventory under variable costing?
Group of answer choices
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