The following data relates to Mandarin Company. Units in beginning inventory — Units produced 15,000 Units sold ($350 per unit) 12,000 Variable costs per unit: Direct materials $85 Direct labor 160 Variable overhead 70 Fixed costs: Fixed overhead per unit produced $40 Fixed selling and administrative expenses 160,000 Determine the value of ending inventory under absorption costing.
The following data relates to Mandarin Company. Units in beginning inventory — Units produced 15,000 Units sold ($350 per unit) 12,000 Variable costs per unit: Direct materials $85 Direct labor 160 Variable overhead 70 Fixed costs: Fixed overhead per unit produced $40 Fixed selling and administrative expenses 160,000 Determine the value of ending inventory under absorption costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following data relates to Mandarin Company.
| Units in beginning inventory | — |
| Units produced | 15,000 |
| Units sold ($350 per unit) | 12,000 |
| Variable costs per unit: | |
| Direct materials | $85 |
| Direct labor | 160 |
| Variable |
70 |
| Fixed costs: | |
| Fixed overhead per unit produced | $40 |
| Fixed selling and administrative expenses | 160,000 |
Determine the value of ending inventory under absorption costing.
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