Question
The following information has been extracted from the financial records of McCain Corporation for its first year of operations in 2021: Units produced 10,000 Units
The following information has been extracted from the financial records of McCain Corporation for its first year of operations in 2021:
| Units produced | 10,000 |
| Units sold THE SELLING PRICE IS $50/UNIT | 7,000 |
| Variable costs per unit: | |
| Direct material | $8 |
| Direct labor | 9 |
| Manufacturing overhead | 3 |
| SG&A/unit sold | 4 |
| Fixed costs: | |
| Manufacturing overhead | ($70,000/10,000) = 7 |
| SG&A Beginning inventory units (1/1/21) 0 Ending inventory units (12/31/21) 3,000 | $30,000 |
Refer to McCain Corporation. What is the total cost of the ending inventory on the balance sheet under absorption costing?
a. $61,000
b. $71,000
c. $81,000
d. $91,000
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins
4th Edition
0073527092, 978-0073527093
