During January, DAC Inc. produced 5,000 units of product with costs as follows:   Direct materials $40,000 Direct labour 22,000 Variable overhead 10,000 Fixed overhead  90,000        $162,000 At the end of January, there were 1,000 units of the product left in closing inventory.  What is the value of closing inventory under variable costing?

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 1E: At the end of the first year of operations, 21,500 units remained in the finished goods inventory....
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During January, DAC Inc. produced 5,000 units of product with costs as follows:
 

Direct materials
$40,000
Direct labour
22,000
Variable overhead
10,000
Fixed overhead
 90,000    
 
 $162,000



At the end of January, there were 1,000 units of the product left in closing inventory.  What is the value of closing inventory under variable costing?

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