The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods inventory in units Units produced Units sold Sales 8,600 5,900 $ 767,000 $ 172,000 Materials cost $ 86,000 Variable conversion cost used Fixed manufacturing cost $ 946,000 Indirect operating costs (fixed) $ 118,000 The difference between the variable costing ending inventory and the absorption costing ending inventory is: Multiple Choice 2,700 units times $115 per unit variable conversion cost plus $110 per unit fixed manufacturing cost 2.700 units times $115 per unit variable conversion cost plus $110 per unit fixed manufacturing cost plus $111.67 per unit indirect operating 2.700 units times $105 per unit materials cost

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 21BEA: Inventory Valuation under Absorption Costing Refer to the data for Judson Company above. Required:...
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The following information is available for Barnes Company for the fiscal year ended December 31:
Beginning finished goods inventory in units
Units produced
Units sold
Sales
0
8,600
5,900
$ 767,000
$ 172,000
$ 86,000
Materials cost
Variable conversion cost used
Fixed manufacturing cost
Indirect operating costs (fixed)
$ 946,000
$ 118,000
The difference between the variable costing ending inventory and the absorption costing ending inventory is:
Multiple Choice
O
2,700 units times $115 per unit variable conversion cost plus $110 per unit fixed manufacturing cost
4
2,700 units times $115 per unit variable conversion cost plus $110 per unit fixed manufacturing cost plus $111.67 per unit indirect operating c
2,700 units times $105 per unit materials cost
Transcribed Image Text:The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods inventory in units Units produced Units sold Sales 0 8,600 5,900 $ 767,000 $ 172,000 $ 86,000 Materials cost Variable conversion cost used Fixed manufacturing cost Indirect operating costs (fixed) $ 946,000 $ 118,000 The difference between the variable costing ending inventory and the absorption costing ending inventory is: Multiple Choice O 2,700 units times $115 per unit variable conversion cost plus $110 per unit fixed manufacturing cost 4 2,700 units times $115 per unit variable conversion cost plus $110 per unit fixed manufacturing cost plus $111.67 per unit indirect operating c 2,700 units times $105 per unit materials cost
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