Required information [The following information applies to the questions displayed below.) Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,050 rackets and sold 5,430. Each racket was sold at a price of $90. Fixed overhead costs are $91,650 per year, and fixed selling and administrative costs are $67,400 per year. The company also reports the following per unit variable costs for the year. Direct materials. Direct labor Variable overhead. Variable selling and administrative expenses Compute the cost of ending finished goods inventory reported on the balance sheet using absorption costing. Finished goods inventory under absorption costing Product cost per unit $12 8 Finished goods inventory reported on balance sheet
Required information [The following information applies to the questions displayed below.) Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,050 rackets and sold 5,430. Each racket was sold at a price of $90. Fixed overhead costs are $91,650 per year, and fixed selling and administrative costs are $67,400 per year. The company also reports the following per unit variable costs for the year. Direct materials. Direct labor Variable overhead. Variable selling and administrative expenses Compute the cost of ending finished goods inventory reported on the balance sheet using absorption costing. Finished goods inventory under absorption costing Product cost per unit $12 8 Finished goods inventory reported on balance sheet
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,050 rackets
and sold 5,430. Each racket was sold at a price of $90. Fixed overhead costs are $91,650 per year, and fixed selling and
administrative costs are $67,400 per year. The company also reports the following per unit variable costs for the year.
Direct materials
Direct labor
Variable overhead.
Variable selling and administrative expenses.
Finished goods inventory under absorption costing
Product cost per unit
$ 12
8
Compute the cost of ending finished goods inventory reported on the balance sheet using absorption costing.
Finished goods inventory reported on balance sheet
NUO
5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc11ef10d-d84e-4cea-9458-25c34898ac40%2Fdd3a0da6-67d6-4544-ba85-f2c59fec5a3b%2Fnrnan6n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,050 rackets
and sold 5,430. Each racket was sold at a price of $90. Fixed overhead costs are $91,650 per year, and fixed selling and
administrative costs are $67,400 per year. The company also reports the following per unit variable costs for the year.
Direct materials
Direct labor
Variable overhead.
Variable selling and administrative expenses.
Finished goods inventory under absorption costing
Product cost per unit
$ 12
8
Compute the cost of ending finished goods inventory reported on the balance sheet using absorption costing.
Finished goods inventory reported on balance sheet
NUO
5
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