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 Variable manufacturing overhead Total variable manufacturing costs per unit Fixed manufacturing overhead per year $ 161 183 107 $ 451 $ 5,94,000 In addition, the company has fixed selling and administrative costs: Fixed selling costs per year Fixed administrative costs per year $ 2,00,500 $ 1,02,400 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 Variable manufacturing overhead Total variable manufacturing costs per unit Fixed manufacturing overhead per year $ 161 183 107 $ 451 $ 5,94,000 In addition, the company has fixed selling and administrative costs: Fixed selling costs per year Fixed administrative costs per year $ 2,00,500 $ 1,02,400 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?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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