Titan manufacturing reports the following costs to produce 12,000 units in its first year of operations: ⚫ Direct materials: $12 per unit • Direct labor: $8 per unit Variable overhead: $84,000 Fixed overhead: $150,000 Out of the 12,000 units produced, 10,500 were sold, and 1,500 remain in inventory at year-end. Under absorption costing, what is the value of the ending inventory?

Titan manufacturing reports the following costs to produce 12,000 units in its first year of operations: ⚫ Direct materials: $12 per unit • Direct labor: $8 per unit Variable overhead: $84,000 Fixed overhead: $150,000 Out of the 12,000 units produced, 10,500 were sold, and 1,500 remain in inventory at year-end. Under absorption costing, what is the value of the ending inventory?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

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At the end of the first year of operations, 21,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
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