lagan, Inc. has collected the following data. (There are no beginning inventories.)Units producedSales price700 units$120 per unitDirect materials$50 per unitDirect laborFixed manufacturing overhead$12 per unitVariable manufacturing overhead$9 per unit$17,500 per yearVariable selling and administrative costs$4 per unit$18,000 per yearFixed selling and administrative costsWhat is the ending balance in Finished Goods Inventory using variable costing if 400 units are sold?OA. $21,300OB. $15,000C. $18,600D. $6,300

Variable costing is a method that is used to determine the product cost of a company. However,…

lagan, Inc. has collected the following data. (There are no beginning inventories.) Units produced Sales price 700 units $120 per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $50 per unit $12 per unit $9 per unit $17,500 per year Variable selling and administrative costs $4 per unit $18,000 per year Fixed selling and administrative costs What is the ending balance in Finished Goods Inventory using variable costing if 400 units are sold?

lagan, Inc. has collected the following data. (There are no beginning inventories.) Units produced Sales price 700 units $120 per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $50 per unit $12 per unit $9 per unit $17,500 per year Variable selling and administrative costs $4 per unit $18,000 per year Fixed selling and administrative costs What is the ending balance in Finished Goods Inventory using variable costing if 400 units are sold?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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XYZ Company uses normal costing. Following are various cost and inventory data for the just completed year: Sales revenue OMR470,000; Adjusted gross profit OMR175,000; Selling and admin expenses OMR145,000; Overapplied overhead OMR15,000 ; Prime costs OMR155,000; Work in process inventory has increased by OMR10,000; Finished goods inventory has decreased by OMR20,000. How much is the manufacturing overhead costs applied to work in process during the year? Select one: a. OMR130,000 b. OMR145,000 C None of the answers glven d OMR135,000 e. MR155,000
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Ober Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense Required: $ 127 0 8,970 8,540 430 $ 37 $ 36.50 $ 5.50 $ 12.50 $ 183,885 $ 109,900 a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing.
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