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?
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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Question
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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