University Of North Carolina At Charlotte Operations And Supply Chain Management Assignment Help -
Question - 1.
Amcor, Inc., incurs the following costs to produce and sell a single product.
Variable costs per unit:
Direct materials $ 10
Direct labor $ 5
Variable manufacturing overhead $ 2
Variable selling and administrative expenses $ 4
Fixed costs per year:
Fixed manufacturing overhead $ 90,000
Fixed selling and administrative expenses $ 300,000
During the last year, 30,000 units were produced and 25,000 units were sold. The Finished Goods
inventory account at the end of the year shows a balance of $85,000 for the 5,000 unsold units.
1. Determine whether the company is using absorption costing or variable costing to cost units in the
Finished Goods inventory account.
Calculate the ending balance in the Fin ...Read More
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