Steele Corporation has the following information for January, February, and March: January February March Units produced 10,000 10,000 10,000 Units sold 7,000 8,500 10,500 Production costs per unit (based on 10,000 units) are as follows: Direct materials $12 Direct labor 8 Variable factory overhead 6 Fixed factory overhead 4 Variable selling and admin expenses 10 Fixed selling and admin expenses 4 There were no beginning inventories for January, and all units were sold for $50. Costs are stable over the three 10 months. What is the February ending inventory for Steele Corporation using the absorption costing method? a. $39,000 b. $45,000 c. $135,000 d. $300,000
Steele Corporation has the following information for January, February, and March: January February March Units produced 10,000 10,000 10,000 Units sold 7,000 8,500 10,500 Production costs per unit (based on 10,000 units) are as follows: Direct materials $12 Direct labor 8 Variable factory overhead 6 Fixed factory overhead 4 Variable selling and admin expenses 10 Fixed selling and admin expenses 4 There were no beginning inventories for January, and all units were sold for $50. Costs are stable over the three 10 months. What is the February ending inventory for Steele Corporation using the absorption costing method? a. $39,000 b. $45,000 c. $135,000 d. $300,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Steele Corporation has the following information for January, February, and March:
January February March
Units produced 10,000 10,000
10,000
Units sold
7,000 8,500
10,500
Production costs per unit (based on 10,000 units) are as follows:
Direct materials
$12
Direct labor
8
Variable factory overhead
6
Fixed factory overhead
4
Variable selling and admin expenses 10
Fixed selling and admin expenses
4
There were no beginning inventories for January, and all units were sold for $50. Costs are stable
over the three 10 months.
What is the February ending inventory for Steele Corporation using the absorption costing
method?
a. $39,000
b. $45,000
c. $135,000
d. $300,000
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