Vignette #3 Whistler, Inc., manufactures a specialized snowboard made for the advanced snowboarder. Whistler began 2014 with an inventory of 240 snowboards. During the year, it produced 900 boards and sold 995 for $750 each. Fixed production costs were $280,000, and variable production costs were $325 per unit. Whistler uses a denominator level of 1,000 units. Production-volume variances are written off to cost of goods sold. Fixed advertising, marketing, and other general and administrative expenses were $112,000, and variable shipping costs were $15 per board. Assume that the cost of each unit in beginning inventory is equal to 2014 inventory cost. 8. Using variable costing, the value of the 2014 beginning inventory (in USD) is closest to 9. 10. A. 78,000 B. 180,000 C. 81,600 Using variable costing, the breakeven quantity of snowboards (in units) to cover fixed costs is closest to A. 520 B. 960 C. 1,150 Under absorption costing, the ending inventory (in units) of snowboards is closest to A. 335 B. 245 C. 145

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Vignette #3
Whistler, Inc., manufactures a specialized snowboard made for the advanced
snowboarder. Whistler began 2014 with an inventory of 240 snowboards. During the
year, it produced 900 boards and sold 995 for $750 each. Fixed production costs were
$280,000, and variable production costs were $325 per unit. Whistler uses a
denominator level of 1,000 units. Production-volume variances are written off to cost
of goods sold. Fixed advertising, marketing, and other general and administrative
expenses were $112,000, and variable shipping costs were $15 per board. Assume
that the cost of each unit in beginning inventory is equal to 2014 inventory cost.
8. Using variable costing, the value of the 2014 beginning inventory (in USD) is
closest to
9.
10.
A. 78,000
B. 180,000
C. 81,600
Using variable costing, the breakeven quantity of snowboards (in units) to cover
fixed costs is closest to
A. 520
B. 960
C. 1,150
Under absorption costing, the ending inventory (in units) of snowboards is
closest to
A. 335
B. 245
C. 145
Transcribed Image Text:Vignette #3 Whistler, Inc., manufactures a specialized snowboard made for the advanced snowboarder. Whistler began 2014 with an inventory of 240 snowboards. During the year, it produced 900 boards and sold 995 for $750 each. Fixed production costs were $280,000, and variable production costs were $325 per unit. Whistler uses a denominator level of 1,000 units. Production-volume variances are written off to cost of goods sold. Fixed advertising, marketing, and other general and administrative expenses were $112,000, and variable shipping costs were $15 per board. Assume that the cost of each unit in beginning inventory is equal to 2014 inventory cost. 8. Using variable costing, the value of the 2014 beginning inventory (in USD) is closest to 9. 10. A. 78,000 B. 180,000 C. 81,600 Using variable costing, the breakeven quantity of snowboards (in units) to cover fixed costs is closest to A. 520 B. 960 C. 1,150 Under absorption costing, the ending inventory (in units) of snowboards is closest to A. 335 B. 245 C. 145
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