Richetti produces stereo speakers. The selling price per pair of speakers is $1,800. There is no beginning inventory. Costs involved in production are: Direct material Direct labor $161 183 Variable manufacturing overhead 107 Total variable manufacturing costs per unit $451 Fixed manufacturing overhead per year $594,000 In addition, the company has fixed selling and administrative costs: Fixed selling costs per year $200,500 Fixed administrative costs per year $102,400 During the year, Richetti produces 1,500 pairs of speakers and sells 1,200 pairs. What is the value of ending inventory using variable costing?
Richetti produces stereo speakers. The selling price per pair of speakers is $1,800. There is no beginning inventory. Costs involved in production are: Direct material Direct labor $161 183 Variable manufacturing overhead 107 Total variable manufacturing costs per unit $451 Fixed manufacturing overhead per year $594,000 In addition, the company has fixed selling and administrative costs: Fixed selling costs per year $200,500 Fixed administrative costs per year $102,400 During the year, Richetti produces 1,500 pairs of speakers and sells 1,200 pairs. What is the value of ending inventory using variable costing?
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...
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