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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.
Required:
1. Determine whether the company is using absorption costing or variable costing to cost units in the
Finished Goods inventory account.
a.
Calculate the ending balance in the Fin ...Read More

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