Chapter 2, Problem 24E

Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for $60 each. The actual variable unit cost is as follows:

Fixed overhead was $320,000. Fixed selling expenses consisted of advertising copayments totaling $110,000. Fixed administrative expenses were $236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was

1. a. $55,500
2. b. $92,500
3. c. $66,500
4. d. $39,900