39.Iagan, Inc. has collected the following data. (There are no beginning inventories.) Units produced600 unitsSales price$120 per unitDirect materials$30 per unitDirect labor$10 per unitVariable manufacturing overhead$7 per unitFixed manufacturing overhead$17,900 per yearVariable selling and administrative costs$4 per unitFixed selling and administrative costs$10,600 per year What is the ending balance in Finished Goods Inventory using variable costing if 500 units are sold? $4,000 $4,700 $1,700 $3,000

Ending balance in finished goods inventory = Ending units * Unit product cost under variable costing…

Answered: Iagan, Inc. has collected the following…

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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39.

Iagan, Inc. has collected the following data. (There are no beginning inventories.)

Units produced	600	units
Sales price	$120	per unit
Direct materials	$30	per unit
Direct labor	$10	per unit
Variable manufacturing overhead	$7	per unit
Fixed manufacturing overhead	$17,900	per year
Variable selling and administrative costs	$4	per unit
Fixed selling and administrative costs	$10,600	per year

What is the ending balance in Finished Goods Inventory using variable costing if 500 units are sold?

		$4,000
		$4,700
		$1,700
		$3,000

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