Belle Company reports the following information for the current year. All beginning inventory amount equaled $0 this year. Units produced this year Units sold this year Direct materials. Direct labor $ 22 per unit $ 24 per unit Variable overhead $ 3 per unit Fixed overhead $ 490,000 in total Given Belle Company's data, compute cost of finished goods in inventory under absorption costing. 70,000 units 42,000 units

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Chapter1: Financial Statements And Business Decisions
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Belle Company reports the following information for the current year. All beginning inventory amounts
equaled $0 this year.
Units produced this year
Units sold this year
Direct materials
Direct labor
Variable overhead
Fixed overhead
70,000 units
42,000 units
$ 22 per unit
$24 per unit
$3 per unit
$ 490,000 in total
Given Belle Company's data, compute cost of finished goods in inventory under absorption costing.
Multiple Choice
O
O
O
O
$1,568,000
O
$2,052,000
O
$1,231,200
During its first year of operations, the McCormick Company incurred the following manufacturing costs:
Direct materials
$7 per unit
Direct labor
$5 per unit
Variable overhead
$6 per unit
Fixed overhead
$ 279,000 per year
о
о
$744,800
The company produced 31,000 units, and sold 20,500 units, leaving 10,500 units in inventory at year-end.
What is the value of ending inventory under absorption costing?
$1,117,200
Multiple Choice
$189,000
$283,500
$94,500
$279,000
$468,000
Transcribed Image Text:Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year Units sold this year Direct materials Direct labor Variable overhead Fixed overhead 70,000 units 42,000 units $ 22 per unit $24 per unit $3 per unit $ 490,000 in total Given Belle Company's data, compute cost of finished goods in inventory under absorption costing. Multiple Choice O O O O $1,568,000 O $2,052,000 O $1,231,200 During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials $7 per unit Direct labor $5 per unit Variable overhead $6 per unit Fixed overhead $ 279,000 per year о о $744,800 The company produced 31,000 units, and sold 20,500 units, leaving 10,500 units in inventory at year-end. What is the value of ending inventory under absorption costing? $1,117,200 Multiple Choice $189,000 $283,500 $94,500 $279,000 $468,000
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