Question: During its second quarter of operations, Blackstone Manufacturing incurred the following production costs: Direct materials, $7 per unit, Direct labor, $4 per unit, Variable overhead, $3 per unit, and Fixed overhead, $180,000. The company produced 15,000 units and sold 12,000 units, leaving 3,000 units in inventory at the end of the quarter. What is the value of ending inventory under variable costing? A. $42,000. B. $78,000. C. $105,000. D. $45.000.

Question: During its second quarter of operations, Blackstone Manufacturing incurred the following production costs: Direct materials, $7 per unit, Direct labor, $4 per unit, Variable overhead, $3 per unit, and Fixed overhead, $180,000. The company produced 15,000 units and sold 12,000 units, leaving 3,000 units in inventory at the end of the quarter. What is the value of ending inventory under variable costing? A. $42,000. B. $78,000. C. $105,000. D. $45.000.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

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