The following information pertains to Maverick Industries: • Beginning inventory: 1,500 units Ending inventory: 5,500 units Direct labor per unit: $35 . Direct materials per unit: $25 . • Variable overhead per unit: $12 Fixed overhead per unit: $28 Variable selling and administrative costs per unit: $8 Fixed selling and administrative costs per unit: $16 What is the value of the ending inventory using the variable costing method?

The following information pertains to Maverick Industries: • Beginning inventory: 1,500 units Ending inventory: 5,500 units Direct labor per unit: $35 . Direct materials per unit: $25 . • Variable overhead per unit: $12 Fixed overhead per unit: $28 Variable selling and administrative costs per unit: $8 Fixed selling and administrative costs per unit: $16 What is the value of the ending inventory using the variable costing method?

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:...

See similar textbooks

Similar questions

Inventory Valuation under Variable Costing Refer to the data for Judson Company above. Required: 1. How many units are in ending inventory? 2. Using variable costing, calculate the per-unit product cost. 3. What is the value of ending inventory under variable costing? Use the following information for Brief Exercises 3-21 and 3-22: During the most recent year, Judson Company had the following data associated with the product it makes:
Inventory Valuation under Variable Costing Refer to the data for Pelham Company on the previous page. Required: 1. How many units are in ending inventory? 2. Using variable costing, calculate the per-unit product cost. 3. What is the value of ending inventory under variable costing? Use the following information for Brief Exercises 3-30 and 3-31: During the most recent year, Pelham Company had the following data associated with the product it makes:
What are the total costs to account for if a companys beginning inventory had $231,432 in materials, $186,450 in conversion costs, and added direct material costs ($4,231,392), direct labor ($2,313,392), and manufacturing overhead ($1,156,696)?
The cost of the ending inventory under absorption costing is higher than the cost of ending inventory under varibale costing by 1. an amount equal to the fixed overhead cost per unit. 2. an amount computed by multiplying the units in the ending inventory by the fixed costs per unit. 3. an amount equal to the difference in the income amounts under both costing methods. 4. the amount equal to the fixed overhead cost charged to expense during the period.
Need help with this general accounting question please answer
Subject:- General Account Use the following data: Beginning inventory in units Units produced Units sold Sales Material cost (unit level/variable) 0 4,800 4,000 $ 4,00,000 $ 96,000 Variable conversion cost used $ 48,000 Fixed manufacturing cost (Facility Level) $ 72,000 Indirect operating cost (fixed) $ 80,000 a. What is the cost of goods sold under variable costing? b. What is the cost of goods sold under absorption costing? c. What is the operating income under variable costing? d. What is the operating income under absorption costing?
Need help with this accounting question
Given the following data
Given the following data. Beginning Inventory in Units - O Units produced - 4,800 Units Sold - 4,000 Sales - $400,000 Material Cost (unit level/variable) - $96,000 Variable Conversion Cost Used - $48,000 Fixed Manufacturing Cost (Facility Level) - $72,000 Indirect Operating Cost (fixed) - $80,000 What is the ending inventory under variable costing? Show your complete solution.
AVERAGE AND FIFO COSTING TRUE OF FALSE Indicate whether the following statements are true of false by inserting in the blank space provided a capital “T" for true of “F” for false. Using the FIFO method: If, for any period, the beginning Finished Goods Inventory is zero, then the average ending unit cost in Finished Goods Inventory is either a number between the unit cost in the beginning WIP inventory and the current period unit costs, or it is equal to the current period unit cost. Using the FIFO method: If the units transferred out exceeds the equivalent units in WIP beginning inventory, then the unit cost of the ending WIP inventory will equal the current period unit cost. Using the FIFO method: If the beginning WIP inventory is zero, then the unit cost of units transferred out will always equal the unit costs of the units in ending WIP inventory. Using the FIFO method: The number of units transferred out equals the number of units started and completed plus the equivalent units…
Problem 7: Cost of Production Report Helen Company uses FIFO process costing. Data are as follows: Beginning inventory 40% complete Units completed during period Ending inventory 70% complete 25,000 units 500,000 units 45,000 units
Problem 7: Cost of Production Report Helen Company uses FIFO process costing. Data are as follows: Beginning inventory 40% complete Units completed during period Ending inventory 70% complete 25,000 units 500,000 units 45,000 units