Question

Krepps Corporation produces a single product. Last year, Krepps manufactured 30,420 units and sold 24,900 units....

Krepps Corporation produces a single product. Last year, Krepps manufactured 30,420 units and sold 24,900 units. Production costs for the year were as follows:

Direct materials $234,234
Direct labor $142,974
Variable manufacturing overhead $258,570
Fixed manufacturing overhead $395,460

Sales totaled $1,207,650 for the year, variable selling and administrative expenses totaled $136,950, and fixed selling and administrative expenses totaled $185,562. There was no beginning inventory. Assume that direct labor is a variable cost.

Under absorption costing, the ending inventory for the year would be valued at:

Multiple Choice

  • $214,628

  • $248,628

  • $257,128

  • $187,128

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Under absorption costing, total production cost is used to value the closing stock. For which Selling and administrative expenses will not be used.

Total material, labour and manufacturing overheads are 234234+142974+258570=635778

Fixed manufacturing overheads=395460

Manufacturing cost per unit=635778/30420=20.9

Fixed manufacturing overheads per unit=395460/30420=13

Closing stock=30420-24900=5520

Therefore value of closing stock =5520*(13+20.9)=1,87,128

Option d is correct answer.

PLEASE LIKE THE ANSWER IF YOU FIND IT HELPFUL OR YOU CAN COMMENT IF YOU NEED CLARITY / EXPLANATION ON ANY POINT-MD

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Direct materials $ 170,000 Direct labor $ 110,000 Variable manufacturing overhead $ 200,000 Fixed manufacturing overhead $ 240,000 Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the...
Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Direct materials $ 170,000 Direct labor $ 110,000 Variable manufacturing overhead $ 200,000 Fixed manufacturing overhead $ 240,000 Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the...
Krepps Corporation produces a single product. Last year, Krepps manufactured 34,930 units and sold 29,900 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 34,930 units and sold 29,900 units. Production costs for the year were as follows: Direct materials $ 265,468 Direct labor $ 171,157 Variable manufacturing overhead $ 300,398 Fixed manufacturing overhead $ 454,090 Sales totaled $1,330,550 for the year, variable selling and administrative expenses totaled $170,430, and fixed selling and administrative expenses totaled $261,975. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the...
Krepps Corporation produces a single product. Last year, Krepps manufactured 28,000 units and sold 22,500 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 28,000 units and sold 22,500 units. Production costs for the year were as follows: Direct materials $ 229,600 Direct labor $ 134,400 Variable manufacturing overhead $ 215,600 Fixed manufacturing overhead $ 336,000 Sales totaled $1,046,250 for the year, variable selling and administrative expenses totaled $117,000, and fixed selling and administrative expenses totaled $201,600. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the...
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,010 units and sold 23,900 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 29,010 units and sold 23,900 units. Production costs for the year were as follows: Direct materials $ 214,674 Direct labor $ 121,842 Variable manufacturing overhead $ 243,684 Fixed manufacturing overhead $ 319,110 Sales totaled $1,159,150 for the year, variable selling and administrative expenses totaled $126,670, and fixed selling and administrative expenses totaled $205,971. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the...
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units. Production costs for the year were as follows: Direct materials $ 248,250 Direct labor $ 145,640 Variable manufacturing overhead $ 274,730 Fixed manufacturing overhead $ 595,800 Sales totaled $1,320,500 for the year, variable selling and administrative expenses totaled $164,020, and fixed selling and administrative expenses totaled $205,220. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per...
Krepps Corporation produces a single product. Last year, Krepps manufactured 34,930 units and sold 29,900 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 34,930 units and sold 29,900 units. Production costs for the year were as follows: Direct materials $ 265,468 Direct labor $ 171,157 Variable manufacturing overhead $ 300,398 Fixed manufacturing overhead $ 454,090 Sales totaled $1,330,550 for the year, variable selling and administrative expenses totaled $170,430, and fixed selling and administrative expenses totaled $261,975. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per...
1: Gabuat Corporation, which has only one product, has provided the following data concerning its most...
1: Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 138 Units in beginning inventory 0 Units produced 2,600 Units sold 2,310 Units in ending inventory 290 Variable costs per unit: Direct materials $ 49 Direct labor $ 27 Variable manufacturing overhead $ 6 Variable selling and administrative expense $ 6 Fixed costs: Fixed manufacturing overhead $36,400 Fixed selling and administrative expense $13,860 The total gross margin...
A manufacturing company that produces a single product has provided the following data concerning its most...
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 154 Units in beginning inventory 0 Units produced 2,560 Units sold 2,230 Units in ending inventory 330 Variable costs per unit: Direct materials $ 51 Direct labor $ 24 Variable manufacturing overhead $ 15 Variable selling and administrative expense $ 16 Fixed costs: Fixed manufacturing overhead $ 92,160 Fixed selling and administrative expense $ 11,150 The total...
The Dean Corporation produces and sells a single product. The following data refer to the year...
The Dean Corporation produces and sells a single product. The following data refer to the year just completed:        Beginning inventory 0   Units produced 29,700   Units sold 22,700   Selling price per unit $ 469   Selling and administrative expenses:   Variable per unit $ 20   Fixed (total) $ 522,100   Manufacturing costs:   Direct materials cost per unit $ 206   Direct labor cost per unit $ 53   Variable manufacturing overhead cost per unit $ 37   Fixed manufacturing overhead (total) $ 415,800     Assume that...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT