Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed manufacturing overhead costs, $10,000; variable selling and administrative costs, $5 per unit; total fixed selling and administrative costs, $7,500. There are no beginning inventories. What is the ending balance in Finished Goods Inventory using variable costing if 450 units are sold? a. $2,000 b. $2,500 c. $2,750 d. $3,500
Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed manufacturing overhead costs, $10,000; variable selling and administrative costs, $5 per unit; total fixed selling and administrative costs, $7,500. There are no beginning inventories. What is the ending balance in Finished Goods Inventory using variable costing if 450 units are sold? a. $2,000 b. $2,500 c. $2,750 d. $3,500
Chapter5: Process Costing
Section: Chapter Questions
Problem 4PA: During March, the following costs were charged to the manufacturing department: $14886 for...
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Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed
What is the ending balance in Finished Goods Inventory using variable costing if 450 units are sold?
a. $2,000
b. $2,500
c. $2,750
d. $3,500
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