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Absorption costing

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The following data pertain to one month's operations of Whitney, Inc.:
Units in beginning inventory -0-
Units produced 9,000
Units sold 8,000

Variable costs per unit:
Manufacturing $10
Selling and administrative 6
Fixed costs in total:
Manufacturing $18,000
Selling and administrative 27,000

The carrying value on the balance sheet of the ending finished goods inventory under absorption costing would be:
A) $16,000. C) $12,000.
B) $10,000. D) $21,000.

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Solution Summary

Calculates the carrying value on the balance sheet of the ending finished goods inventory under absorption costing.

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The following data pertain to one month's operations of Whitney, Inc.:
Units in beginning inventory -0-
Units produced 9,000
Units sold 8,000

Variable costs per unit:
Manufacturing $10
Selling and administrative 6
Fixed costs in total:
Manufacturing $18,000
Selling and ...

Purchase this Solution
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