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Serga [27]
3 years ago
13

A company produces a single product. Variable production costs are $13.90 per unit and variable selling and administrative expen

ses are $4.90 per unit. Fixed manufacturing overhead totals $55,000 and fixed selling and administration expenses total $59,000. Assuming a beginning inventory of zero, production of 5,900 units and sales of 4,550 units, the dollar value of the ending inventory under variable costing would be:
Business
1 answer:
Lyrx [107]3 years ago
4 0

Answer:

Ending inventory= $18,795

Explanation:

Giving the following information:

The variable production costs are $13.90

Assuming a beginning inventory of zero, production of 5,900 units and sales of 4,550 units.

<u>Under the variable costing method, the unitary product cost is calculated using the direct material, direct labor, and variable allocated overhead. In this case, the variable production cost.</u>

Ending inventory= (5,900 - 4,550)*13.90= $18,795

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