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 the Finished Goods Inventory using variable costing if 450 units are sold? $2,000 $2,500 $2,750 $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 the Finished Goods Inventory using variable costing if 450 units are sold? $2,000 $2,500 $2,750 $3,500
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter21: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 4CMA: Bethany Company has just completed the first month of producing a new product but has not yet...
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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
What is the ending balance in the Finished Goods Inventory using variable costing if 450 units are sold?
- $2,000
- $2,500
- $2,750
- $3,500
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