Question

The information below is for Wendell Co. Product sales 3,000 units at $15 each Variable manufacturing...

The information below is for Wendell Co.

Product sales

3,000 units at $15 each

Variable manufacturing costs

$9.50 per unit

Fixed manufacturing overhead

$3,200

Variable selling and administrative costs

$2.50 per unit

Fixed selling and administrative costs

$1 per unit sold

Units budgeted and produced

3,200 units

Beginning inventory

0 units

Wendell’s ending inventory under absorption costing is

A. $600

B. $2,300

C. $2,100

D. $1,900

Business   Accounting   
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Homework Answers

Answer #1

Correct answer----------------(C) $2,100

Working

Variable manufacturing cost per unit $                   9.50
Fixed manufacturing overhead per unit ($ 3200/3200) $                   1.00
Total cost per unit $                10.50
Multiplied by: Units in ending inventory                        200
Ending Inventory $          2,100.00
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