Chassen Company, a cracker and cookie manufacturer, has the following unit costs for the month of June:
Question:
Chassen Company, a cracker and cookie manufacturer, has the following unit costs for the month of June:
Variable manufacturing cost..............................................................$5.00
Variable marketing cost......................................................................3.50
Fixed manufacturing cost...................................................................2.00
Fixed marketing cost............................................................................4.00
A total of 100,000 units were manufactured during June, of which 10,000 remain in ending inventory. Chassen uses the first-in, first-out (FIFO) inventory method, and the 10,000 units are the only finished goods inventory at June 30. Under the absorption costing concept, the value of Chassen’s June 30 finished goods inventory would be:
a. $50,000.
b. $70,000.
c. $85,000.
d. $145,000.
Ending InventoryThe ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton