1.

View Policies Current Attempt in Progress Blossom Company sells its product for $26 per unit. During 2022. it produced 23500 units and sold 13000 units {there was no beginning inventory). Costs per unit are: direct materials $5, direct labour $4, and variable overhead $3. Fixed costs are: $376000 manufacturing overhead, and $47000 selling and administrative expenses. The perAunit manufacturing cost under absorption costing is 0 $12.00. 0 $28.00. C) $30.00. 0 $40.92. eTextbook and Media Save for Later Attempts: O of 1 used Question 22 of 24 - / 2 E View Policies Current Attempt in Progress Carla Vista Company sells its product for $26 per unit. During 2022. it produced 24500 units and sold 14000 units {there was no beginning inventory). Costs per unit are: direct materials $5, direct labour $4, and variable overhead $3. Fixed costs are: $294000 manufacturing overhead, and $98000 selling and administrative expenses. The perunit manufacturing cost under variable costing is 0 $12.00. 0 $24.00. 0 $23.00. 0 $33.00. eTextbook and Media Save for Later Attempts: O of 1 used Question 20 of 24 - 15 View Policies Current Attempt in Progress You work for a firm of management consultants that offers assistance to new businesses. One of your clients is Kingbird Manufacturing, a company that manufactures a small, but vital, component for the specialized lighting industry. Kingbird is a new company (and a new client for your employer) and you have been assigned the task of advising it of its options for financing its inventory during the first few months. The marketing experts have told you that Kingbird should have at least three months of inventory on hand so it can meet all demands from its customers. The annual production of the Kingbird component is projected to be 138,000 units. Annual direct labour and direct material costs together are estimated at $345,000 per year. Variable manufacturing costs are estimated to be $207,000 per year; fixed manufacturing costs are projected to be $575,000 per year. Fixed marketing and administration costs are estimated at $805,000 per year. These projections are all for the company's first year of business. (a) Assuming that Kingbird must hold three months of the component in inventory, what is the cost of the three-month inventory using variable costing? What is the cost of inventory using absorption costing? Variable Costing Absorption Costing Three-month inventory cost $ $ e Textbook and Media OK No, thanks X Attempts: 0 of 1 used Submit