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?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 4CMA: Bethany Company has just completed the first month of producing a new product but has not yet...
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