The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 42 Selling and administrative $ 16 Fixed costs per year: Production $ 114,240 Selling and administrative $ 98,250 Last year, 7,140 units were produced and 6,940 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 42 Selling and administrative $ 16 Fixed costs per year: Production $ 114,240 Selling and administrative $ 98,250 Last year, 7,140 units were produced and 6,940 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Southern Corporation manufactures a single product and has the following cost structure:
| Variable costs per unit: | ||
| Production | $ | 42 |
| Selling and administrative | $ | 16 |
| Fixed costs per year: | ||
| Production | $ | 114,240 |
| Selling and administrative | $ | 98,250 |
Last year, 7,140 units were produced and 6,940 units were sold. There was no beginning inventory.
The carrying value on the
*MULTIPLE CHOICE: See attached image
Transcribed Image Text:The Southern Corporation manufactures a single product and has the following cost structure:
Variable costs per unit:
Production
$
$
42
Selling and administrative
Fixed costs per year:
16
Production
$114,240
$ 98,250
Selling and administrative
Last year, 7,140 units were produced and 6,940 units were sold. There was no beginning inventory.
The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
Multiple Choice
the same as absorption costing.
$6,940 greater than under absorption costing.
$6,940 less than under absorption costing.
$3,200 less than under absorption costing.
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