Yates Company shows the following unit costs for its product: Yates started the year with 8,000 units in inventory, produced 50,000 units during the year, and sold 55,000 units. The value of ending inventory is a. greater under variable costing than absorption costing. b. greater under absorption costing than variable costing. c. the same under both variable and absorption costing. d. There is no ending inventory. e. This situation cannot happen.

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
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Yates Company shows the following unit costs for its product:

Yates started the year with 8,000 units in inventory, produced 50,000 units during the year, and sold 55,000 units. The value of ending inventory is

a. greater under variable costing than absorption costing.

b. greater under absorption costing than variable costing.

c. the same under both variable and absorption costing.

d. There is no ending inventory.

e. This situation cannot happen.

 

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