Ask Question
21 April, 11:15

McFadden, Inc. has collected the following data. (There are no beginning inventories.) Units produced 600 unitsSales price $150 per unitDirect materials $40 per unitDirect labor $13 per unitVariable manufacturing overhead $6 per unitFixed manufacturing overhead $19,500 per yearVariable selling and administrative costs $4 per unitFixed selling and administrative costs $15,700 per yearRequired:What is the ending balance in Finished Goods Inventory using variable costing if 450 units are sold? A.$6,000B.$8,850C.$7,950D.$2,850

+3
Answers (1)
  1. 21 April, 13:52
    0
    The correct answer is B.

    Explanation:

    Giving the following information:

    Units produced 600 units

    Direct materials $40 per unit

    Direct labor $13 per unit

    Variable manufacturing overhead $6 per unit

    Variable selling and administrative costs $4 per unit

    The variable costing method calculates the cost of goods based on direct material, direct labor, and variable manufacturing overhead.

    First, we need to calculate the unitary cost of production:

    unitary cost = 40 + 13 + 6 = $59

    Inventory = 600 units - 450 units = 150 units

    Inventory cost = 150*59 = $8,850
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “McFadden, Inc. has collected the following data. (There are no beginning inventories.) Units produced 600 unitsSales price $150 per ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers