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
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
ISBN:9781337115773
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:...
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a88f93e-9dfb-4d45-837c-60cfbeefd36f%2Fbf1bae13-294b-4cb4-b292-0f54530d5b5d%2F5u7lj7i_processed.png&w=3840&q=75)
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College