A company reports the following information for the current year: Units Produced (25,000)< Units Sold (15,000), DM ($9 per unit), DL ($11 per unit), VOH (total $75,000) and FOH (total $137,500). Compute the cost of finished goods in inventory under absorption costing

A company reports the following information for the current year: Units Produced (25,000)< Units Sold (15,000), DM ($9 per unit), DL ($11 per unit), VOH (total $75,000) and FOH (total $137,500). Compute the cost of finished goods in inventory under absorption costing

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 23E: Orinder Company provided the following information for the last calendar year: During the year,...

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Question

A company reports the following information for
the current year: Units Produced (25,000)< Units
Sold (15,000), DM ($9 per unit), DL ($11 per unit),
VOH (total $75,000) and FOH (total $137,500).
Compute the cost of finished goods in inventory
under absorption costing
a. $427,500
O b. $285,000
O c. $230,000
O d. $712,500

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