Question

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 ending inventory for the year would be valued at:

Multiple Choice

  • $216,000

  • $0

  • $180,000

  • $248,250

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution:

C. $180,000

Units in ending inventory = Units in beginning inventory+ Units produced -Units sold

= 0+20,000-15,000

= 5,000units

  

Direct materials ($170,000/20,000) $8.5
Direct labour($110,000/20,000) $5.5
Variable manufacturing overhead(200,000/20,000) $10
Fixed manufacturing over head cost($240,000/20,000) $12
Absorption costing unit product cost(a) $36
Units in ending inventory (b) 5,000units
Value of ending inventory under absorption costing(a*b) $180,000
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 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 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...
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 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...
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...
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...
The LaGrange Corporation had the following budgeted sales for the first half of the current year:...
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Krepps Corporation produces a single product. Last year, Krepps manufactured 25,000 units and sold 20,000 units. Production costs for the year were as follows: Direct materials $ 180,000 Direct labor $ 120,000 Variable manufacturing overhead $ 210,000 Fixed manufacturing overhead $ 250,000 Sales totaled $850,000 for the year, variable selling and administrative expenses totaled $110,000, and fixed selling and administrative expenses totaled $170,000. There...
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