Question

Krepps Corporation produces a single product. Last year, Krepps manufactured 35,040 units and sold 29,600 units. Production costs for the year were as follows: Under absorption costing, the ending inventory for the year would be valued at:

Answer 1

Answer:

Ending Inventory will be valued at $171,604

Explanation:

Your question was incomplete, I have attached the full question as an image below.

Ending Inventory = Total manufacturing cost × Ending  Inventory / Units Manufactured

where,

Total Manufacturing Cost Calculation :

Direct materials                             $266,304

Direct labor                                        $157,680

Variable manufacturing overhead   $297,840

Fixed manufacturing overhead     $385,440

Total Manufacturing Cost                 $1,107,264

Ending Inventory = $1,107,264 × (35,040 units - 29,600 units) / 35,040 units

                             = $171,604

Therefore, ending Inventory will be valued at $171,604