The following information pertains to Stark Corporation: Beginning inventory Ending inventory Direct labor per unit Direct materials per unit Variable overhead per unit O units 5,000 units $ 20 16 4 Fixed overhead per unit 10 Variable selling costs per unit 12 Fixed selling costs per unit 16 What is the value of ending inventory using the variable costing method? a. $310,000 b. $250,000 c. $200,000 d. $390,000
The following information pertains to Stark Corporation: Beginning inventory Ending inventory Direct labor per unit Direct materials per unit Variable overhead per unit O units 5,000 units $ 20 16 4 Fixed overhead per unit 10 Variable selling costs per unit 12 Fixed selling costs per unit 16 What is the value of ending inventory using the variable costing method? a. $310,000 b. $250,000 c. $200,000 d. $390,000
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:...
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
Transcribed Image Text:The following information pertains to Stark Corporation:
Beginning inventory
Ending inventory
Direct labor per unit
Direct materials per unit
Variable overhead per unit
O units
5,000 units
$ 20
16
4
Fixed overhead per unit
10
Variable selling costs per unit
12
Fixed selling costs per unit
16
What is the value of ending inventory using the variable costing
method?
a. $310,000
b. $250,000
c. $200,000
d. $390,000
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