Ask Question
9 April, 06:00

A company produces a single product. Variable production costs are $12.30 per unit and variable selling and administrative expenses are $3.30 per unit. Fixed manufacturing overhead totals $39,000 and fixed selling and administration expenses total $43,000. Assuming a beginning inventory of zero, production of 4,300 units and sales of 3,750 units, the dollar value of the ending inventory under variable costing would be:

+5
Answers (1)
  1. 9 April, 07:23
    0
    Ending inventory = $6,765

    Explanation:

    Giving the following information:

    Variable production costs are $12.30 per unit

    Assuming a beginning inventory of zero, production of 4,300 units, and sales of 3,750 units.

    The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead) to calculate production costs.

    Units in ending inventory = 550

    Ending inventory = 12.3*550 = $6,765
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company produces a single product. Variable production costs are $12.30 per unit and variable selling and administrative expenses are ...” 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