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Based on the above information what would be the cost of the ending finished goods inventory under absorption (full) costing?

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A company manufactures dining tables.

The variable costs per unit are as follows.

Other costs are fixed and include advertising costs of $45,000 per year administrative costs of $55,000 annually and fixed manufacturing overhead of S250.000 per year based on Budgeted production of 10.000 dining tables There was no beginning inventory During the prior year, a total of 10.000 dining tables were manufactured, with 9 000 dining tables sold at $100 each.

Based on the above information what would be the cost of the ending finished goods inventory under absorption (full) costing?

  • A . $45,000.
    B. $70,000.
    C. $80,000.
    D. $100,000.

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Suggested Answer: B
 
Posted : 23/01/2023 1:18 am

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