rt of variable overhead. For March, assume that it incurred the following unit costs: Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500 Variable overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440 Fixed overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 The 100 units of beginning inventory for March had an absorption costing value of $90,000 and a variable costing value of $76,000. For March, assume that Bondware Inc. produced 500 units and sold 540 units. Required Compute Bondware's March amount of ending inventory u

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Bondware Inc. has a highly automated assembly line that uses ve1y little direct labor. Therefore, direct labor is part of variable overhead. For March, assume that it incurred the following unit costs:
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500
Variable overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440
Fixed overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
The 100 units of beginning inventory for March had an absorption costing value of $90,000 and a variable costing value of $76,000. For March, assume that Bondware Inc. produced 500 units and sold 540 units.
Required
Compute Bondware's March amount of ending inventory under both absorption and variable costing if the FIFO inventory method was used.

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