During the most recent year, ABC Company reported the following data. During the year 10,000 units were produced and 9,000 units were sold. There were no units in beginning inventory. The following costs were incurred: direct materials = $8 per unit; direct labor = $5 per unit; variable overhead = $4 per unit; fixed overhead per unit = $5 per unit. Fixed selling and administrative expenses = $100,000 in total. Calculate cost of ending inventory under absorption costing. Group of answer choices $23,000 $26,000 $22,000 $32,000

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Variable costs: These costs are incurred in conjunction to the volume of goods produced or sold. It…

Q: A company started a new product, and in the first month started 80,000 units. The ending work in…

A: Units started = 80,000 Ending units = 20,000 Units transferred = 60,000

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Formulas:

Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…

A: Variable Costing:  The variable costing is the method of costing in which only the variable…

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 30,140 units and sold…

A: Contribution Margin - When we deduct variable cost of the product from the net sales , then the…

Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…

A: Inventory valuation is a financial and accounting method that determines the value of unsold…

Q: The department had a beginning inventory of 5,500 units of product, and it started 94,500 units…

A: The equivalent units are calculated on the basis of percentage of work completed during the period.

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 26,160 units and sold…

A: Selling price per unit = $971,850 / 20,900 units = $46.50   Variable cost per unit = [($188,352 +…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: PARTICULARS  AMOUNT ($) DIRECT MATERIAL $175,500 DIRECT LABOR $232,800 VARIABLE FACTORY…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: As per the absorption costing system, product cost includes both fixed and variable expenses.

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: In variable income statement all the variable manufacturing expenses are considered as the product…

Q: ​Circetrax, Inc. has provided the following financial information for the​ year:   Finished Goods​…

A: Under the absorption costing, fixed manufacturing overhead is considered as a product cost and…

Q: Cavy Company completed 7,770 units during the year at a cost of $590,520. The beginning finished…

A: solution given Number of completed unit 7770 Cost incurred $590520 Opening inventory…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: The cost can be classified into two categories i.e. product cost and period cost. The product cost…

Q: The company, which has only one product, has provided the following data concerning its most recent…

A: Under variable costing, the product costs only include direct material, direct labor, and variable…

Q: The following production data came from the records of Olympic Enterprises for the year ended…

A: Inventory cost is computed differently under two methods : Variable costing and Absorption costing.…

Q: A company started a new product, and in the first month started 124,575 units. The ending work in…

A: Under Weighted average method, the beginning WIP is considered equally as transferred in units.

Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…

A: Absorption costing and the Variable costing are two costing methods. Under the Absorption costing,…

Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…

A: Under absorption costing the cost per unit includes the fixed cost and variable cost but under…

Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…

A:

Q: Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for…

A: Following are the calculation of ending inventory under variable coting:

Q: At the end of the first year of operations, 4,400 units remained in the finished goods inventory.…

A: Variable cost per unit = Direct materials + Direct labor + Variable factory overhead =…

Q: The following table shows the inventory balances, in units, for years 1, 2, and 3. Total fixed…

A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…

Q: Kokey's accounting records shows the following: Increase of Raw Materials of 4,500; decrease in…

A: Cost of direct materials used = Cost of Purchases of raw materials + Decrease(increase) of Raw…

Q: Cavy Company completed 10,020 units during the year at a cost of $771,540. The beginning finished…

A: Cost per unit for beginning finished goods inventory = Total cost / Total units = $158,400 / 2,200…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: Fixed overhead per unit = total Fixed overhead/units produced = $390000/39000 units = $10 per unit

Q: The following information was taken from H Company’s accounting records for the year December 31,…

A: Raw material used = Raw materials purchased - Increase in raw materials inventory = 430000-15000 =…

Q: The company produced 21,000 units, and sold 15,500 units, leaving 5,500 units in inventory at…

A: A variable costing system refers to the costing system in which manufacturing cost is computed after…

Q: In its first month of operation, Vaughn Manufacturing purchased 320 units of inventory for $8, then…

A: FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Variable costing is the method of costing, where only the variable costs are assigned to the cost of…

Q: A company started a new product, and in the first month started 100,000 units. The ending work in…

A: The equivalent units are calculated on the basis of work completed during the period.

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Ending Inventory = Number of Units in Ending Inventory x Cost per Unit Cost per Unit under Variable…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Formula: Total Product costs = Direct Materials + Direct Labor + Variable factory overhead.

Q: pls show solutions Last year, Harris Company manufactured 17,000 units and sold 13,000 units.…

A: There are two costing methods which are, (1) Variable costing method (2) Absorption costing method…

Q: The following information is given for a company for the year ended December 31:…

A: SOLUTION- Absorption costing: Absorption costing is also called traditional costing. This method of…

Q: ABC Company produced 3,000 units and sold 2,500 units. Total fixed manufacturing overhead cost is…

A: Under absorption costing, the fixed overheads are consumed for the goods sold during the period.

Q: In its first year of business, Miss Take, the bookkeeper, erroneously recorded $10,000 of product…

A: Period costs are not manufacturing costs and are fully expensed in the period which they are…

Q: A company started a new product, and in the first month started 64,735 units. The ending work in…

A: Formula: Units transferred out = Started units - Ending work in process Deduction of ending work in…

Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…

A: Under absorption costing fixed cost is part of production cost Under variable costing variable cost…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: Absorption Costing: Absorption Costing is a costing system that is used in valuing inventory. It not…

Q: The following information were taken from the accounting records of BLUE Corporation for the year…

A: Total manufacturing costs = Raw materials used + Freight in + Direct labor + Factory overhead where,…

Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…

A: In absorption costing fixed and variable both expenses are counted as production expense but in…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Variable costing is a method under which the direct costs are included which varies according to the…

Q: For each of the following independent situations, calculate the missing values: 1. The Belen plant…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: During its first year of operations, the McCormick Company incurred the following manufacturing…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: A business operated at 100% of capacity during its first month and incurred the following costs:…

A: Formula used: Cost per unit of product=Production costUnits produced Amount of inventory=Ending…

Q: The following data relates to Alpha Company. Units in beginning inventory — Units produced 25,000…

A: Under variable costing, ending inventory is valued at variable costs and fixed cost is considered as…

Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…

A: Variable costing is the bookkeeping technique wherein all the variable creation costs are just…

Q: A company started a new product, and in the first month started 90,000 units. The ending work in…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.