Question
Hard as a Rock Company, a cracker and cookie manufacturer, has the following unit costs for the month of June, 2020 Variable manufacturing cost 5.00
"Hard as a Rock" Company, a cracker and cookie manufacturer, has the following unit costs
for the month of June, 2020
Variable manufacturing cost 5.00
variable marketing cost 3.50
Fixed manufacturing cost 2.00
Fixed marketing cost 4.00
A total of 100,000 units were manufactured during June, 2020, of which 10,000 remain in ending inventory. "Hard as a Rock" Company uses the first-in, first-out inventory method, and the 10,000 units are the only finished goods inventory at June 30, 2020. Under the absorption costing concept, the value of "Hard as a Rock" Company's June 30, 2020 finished goods inventory would be:
a. 50,000
b. 70,000
c. 85,000
d. 145,000
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