Ask Question
16 November, 10:21

Sanders Company has the following information for last year: Selling price $190 per unit Variable production costs $52 per unit produced Variable selling and admin. expenses $18 per unit sold Fixed production costs $240,000 Fixed selling and admin. expenses $180,000 Units produced 12,000 Units sold 7,000 There were no beginning inventories. What is the cost of ending inventory for Sanders using the variable costing method? a.$300,000 b.$280,000 c.$260,000

+1
Answers (1)
  1. 16 November, 12:06
    0
    Option (c) is correct.

    Explanation:

    Given that,

    Variable production costs = $52 per unit

    selling and admin. expenses = $18 per unit sold

    Fixed production costs = $240,000

    Fixed selling and admin. expenses = $180,000

    Units produced = 12,000

    Units sold = 7,000

    Therefore,

    Cost of ending inventory:

    = (Units produced - Units sold) * Variable production costs per unit

    = (12,000 - 7,000) * $52

    = 5,000 * $52

    = $260,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Sanders Company has the following information for last year: Selling price $190 per unit Variable production costs $52 per unit produced ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers