Question: Direct Materials 10, Direct Labor 20, Variable Manufacturing overhead 5, Total variable manufacturing cost per unit 35, Fixed manufacturing overhead per year 100,000, Fixed Selling

Direct Materials 10, Direct Labor 20, Variable Manufacturing overhead 5, Total variable manufacturing cost per unit 35, Fixed manufacturing overhead per year 100,000, Fixed Selling and administrative expense per year 200,000.

Assume that Ajax produces 10,000 items and sells 8,000 items. In this case, the variable costing value of ending inventory is $70,000. How do I come to the answer of $70,000?

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