Question
Letni Letni is a calendar-year corporation that manufactures microprocessors. Letni produced 9.5 million microprocessor in 2020 and incurred fixed production overhead costs of $2
Letni Letni is a calendar-year corporation that manufactures microprocessors. Letni produced 9.5 million microprocessor in 2020 and incurred fixed production overhead costs of $2 million. In the past 5 years, it has produced the following number of microprocessors: 2019 9.7 million 2018 9.7 million 2017 9.1 million 2016 10.1 million 2015 10.1 million The decline in production in 2017 was due to an employee strike. Read ASC 330-10-30 and determine what amount of fixed production overhead costs should be allocated to inventory and what amount should be included in current-period expenses. Outline your thought process as well as the judgment(s) you made in reaching this conclusion using the memo to the file format.
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