Question 10

The southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit Production Selling and administrative Production Selling and administrative 35 17 $ Fixed costs per year $157, 080 $128, 810 Last year, 7,140 units were produced and 6,940 units were sold. There was no beginning inventory The carryling value on the balance sheet of the ending Inventory of finished goods under variable costing would be: Muitiple Choice the same as absorption costing $6,940 greater than under absorption costing $6,940 less than under absorption costing $4,400 less than under absorption costing