Question
A company has incurred the following total costs for its very first month of operations: Raw materials purchased $67,000 Direct Labor $81,000 Variable factory overhead
A company has incurred the following total costs for its very first month of operations:
| Raw materials purchased | $67,000 |
| Direct Labor | $81,000 |
| Variable factory overhead | $26,000 |
| Fixed factory overhead | ? |
| Variable selling and administrative | $6,000 |
| Fixed selling and administrative | $8,000 |
The company also reported the following information:
| Sales(1,600 units) | $192,000 |
| Gross Margin | $57,000 |
| Ending inventories | |
| Raw materials | $10,000 |
| Work-in-process | none |
| Finished goods (in units) | 900 units |
How much fixed overhead cost is included in ending finished goods inventory under absorption costing?
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Edi Audit And Control
Authors: I. Walden, A. Braganza
3rd Edition
1855542080, 978-1855542082
