During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $2 per unit, Variable overhead, $4 per unit, and Fixed overhead, $390,000. The company produced 39,000 units, and sold 30,000 units, leaving 9.000 units in inventory at year-end. What is the value of ending inventory under absorption costing? Multiple Choice $99,000 $189,000 $90,000 $390.000 $489,000

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $2 per unit, Variable overhead, $4 per unit, and Fixed overhead, $390,000. The company produced 39,000 units, and sold 30,000 units, leaving 9.000 units in inventory at year-end. What is the value of ending inventory under absorption costing? Multiple Choice $99,000 $189,000 $90,000 $390.000 $489,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4E: On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and...

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