The Brewing Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are $2 per unit sold. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900 000 for the year. Information about Brewing’s production activity for the year is Sales 125 000 units Units produced 150 000 units Units sold 5000 units What is the profit under absorption costing? Select one: Insufficient information to determine A. $350 000 B. $1 250 000 C. $500 000 D. $750 000
1. The Brewing Company manufactures a single product; the
Sales 125 000 units
Units produced 150 000 units
Units sold 5000 units
What is the profit under absorption costing?
Select one:
Insufficient information to determine
A. $350 000
B. $1 250 000
C. $500 000
D. $750 000
2. The Brewing Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are $2 per unit sold. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900 000 for the year. Information about Brewing’s production activity for the year is
Sales 125 000 units
Units produced150 000 units
Units sold 5000 units
What is the value of closing inventory of finished goods under variable costing?
Select one:
A. $480 000
B. $420 000
C. $120 000
D. $240 000
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