[The following information applies to the questions displayed below.] Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,250 rackets and sold 5,530. Each racket was sold at a price of $90. Fixed overhead costs are $94,250 per year, and fixed selling and administrative costs are $67,800 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Finished goods inventory under absorption costing Compute the cost of ending finished goods inventory reported on the balance sheet using absorption costing. Product cost per unit $ 12 Finished goods inventory reported on balance sheet 2852
[The following information applies to the questions displayed below.] Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,250 rackets and sold 5,530. Each racket was sold at a price of $90. Fixed overhead costs are $94,250 per year, and fixed selling and administrative costs are $67,800 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Finished goods inventory under absorption costing Compute the cost of ending finished goods inventory reported on the balance sheet using absorption costing. Product cost per unit $ 12 Finished goods inventory reported on balance sheet 2852
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vishnu
![[The following information applies to the questions displayed below.]
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,250 rackets
and sold 5,530. Each racket was sold at a price of $90. Fixed overhead costs are $94,250 per year, and fixed selling
and administrative costs are $67,800 per year. The company also reports the following per unit variable costs for the
year.
Direct materials
Direct labor
Variable overhead
Variable selling and administrative expenses
Finished goods inventory under absorption costing
Product cost per unit
$ 12
Finished goods inventory reported on balance sheet
8
N U 00
Compute the cost of ending finished goods inventory reported on the balance sheet using absorption costing.
5
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F165baaf5-4218-463a-b4f1-07d8b38be2d6%2Fc985c0ed-6945-4f3c-8d0f-28927e3a7c5b%2Fbynrccw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,250 rackets
and sold 5,530. Each racket was sold at a price of $90. Fixed overhead costs are $94,250 per year, and fixed selling
and administrative costs are $67,800 per year. The company also reports the following per unit variable costs for the
year.
Direct materials
Direct labor
Variable overhead
Variable selling and administrative expenses
Finished goods inventory under absorption costing
Product cost per unit
$ 12
Finished goods inventory reported on balance sheet
8
N U 00
Compute the cost of ending finished goods inventory reported on the balance sheet using absorption costing.
5
2
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