Question
Boal pic manufactures car interior parts .In the month of September 20X4, the production overheads relating to product LXS46 of 48 000 were included in
Boal pic manufactures car interior parts .In the month of September 20X4, the production overheads relating to product LXS46 of 48 000 were included in general admin costs and written off as a period cost.
At 1 September 20X4 there were 100 units of LX540 in invento During September the company produced 1.500 units of the product, and at month end had 120 units remaining in inventory
Assuming that Boal values inventory on a FIFO basis, net profit for the month of September 20X4 is currently
A. understated by 3,600
B. overstated by 3,600
C. understated by 3,840
D. overstated by 3,840
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