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Joshua Wilson
on Oct 15, 2024

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During its first year of operations,the McCormick Company incurred the following manufacturing costs: Direct materials,$5 per unit,Direct labor,$3 per unit,Variable overhead,$4 per unit,and Fixed overhead,$250,000.The company produced 25,000 units,and sold 20,000 units,leaving 5,000 units in inventory at year-end.What is the value of ending inventory under variable costing?

A) $60,000
B) $110,000
C) $50,000
D) $250,000
E) $310,000

Ending Inventory

The value of goods available for sale at the end of an accounting period, not yet sold.

Manufacturing Costs

The total expense involved in manufacturing a product, including direct materials, direct labor, and overhead costs.

Direct Materials

The raw materials directly used in the production of a product, easily traceable to the finished good.

  • Utilize costing techniques to calculate inventory value.
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Melvin PerryOct 16, 2024
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