Inventory Valuation under Absorption Costing and Variable CostingAt the end of the first year of operations, 5,700 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:Direct materials$34.60 Direct labor13.20 Fixed factory overhead5.70 Variable factory overhead5.00 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.Absorption costing$Variable costing$

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Description: Inventory Valuation under Absorption Costing and Variable CostingAt the end of the first year of operations, 5,700 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:Direct materials$34.60 Dir

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

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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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Inventory Valuation under Absorption Costing and Variable Costing

At the end of the first year of operations, 5,700 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:

Direct materials	$34.60
Direct labor	13.20
Fixed factory overhead	5.70
Variable factory overhead	5.00

Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.

Absorption costing	$
Variable costing	$

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