Kaaua Corporation has provided the following data for its two most recent years of operation: Selling price
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Question:
Kaaua Corporation has provided the following data for its two most recent years of operation:
Selling price per unit | $ | 83 |
Manufacturing costs: | ||
Variable manufacturing cost per unit produced: | ||
Direct materials | $ | 13 |
Direct labor | $ | 7 |
Variable manufacturing overhead | $ | 4 |
Fixed manufacturing overhead per year | $ | 396,000 |
Selling and administrative expenses: | ||
Variable selling and administrative expense per unit sold | $ | 4 |
Fixed selling and administrative expense per year | $ | 72,000 |
Year 1 | Year 2 | |
Units in beginning inventory | 0 | 2,000 |
Units produced during the year | 12,000 | 11,000 |
Units sold during the year | 10,000 | 9,000 |
Units in ending inventory | 2,000 | 4,000 |
Which of the following statements is true for Year 2?
Multiple Choice
a.The amount of fixed manufacturing overhead deferred in inventories is $534,000
b.The amount of fixed manufacturing overhead deferred in inventories is $78,000
c.The amount of fixed manufacturing overhead released from inventories is $534,000
d.The amount of fixed manufacturing overhead released from inventories is $78,000
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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