Question
In 2021, the company had a variable manufacturing cost of $14,400 and a fixed manufacturing overhead of $4,000. The company had sold 4,800 units representing
In 2021, the company had a variable manufacturing cost of $14,400 and a fixed manufacturing overhead of $4,000. The company had sold 4,800 units representing 60% of the units manufactured. The initial inventory of finished goods was zero. Which of the following statements would be true? The net profit under the full cost method would be $5,760 greater than the net profit under the variable cost method. Under the variable cost method, the cost of ending inventory would be $7,360 The final inventory under the variable cost method would be $1,600 less than the final inventory under the full cost method. The net profit under the full cost method would be $1,600 less than the net profit under the variable cost method. )No answer is appropriate
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