Question

A manufacturer reports the following costs to produce 24,000 units in its first year of operations: Direct materials, $24 per unit, Direct labor, $20 per unit, Variable overhead, $216,000, and Fixed overhead, $288,000. Of the 24,000 units produced, 23,200 were sold, and 800 remain in inventory at year-end. Under absorption costing, the value of the inventory is: Multiple Choice $35,200. $42,400. $52,000. $44,800. $26,400.

Name: a manufacturer reports the following costs to produce 24000 units in its first year of operations direct materials 24 per unit direct labor 20 per unit variable overhead 216000 and fixed ove 32356
Uploaded: 2023-07-31T05:05:09-08:00
Duration: 2 min 13 s
Channel: Akash M
Description: a manufacturer reports the following costs to produce 24000 units in its first year of operations direct materials 24 per unit direct labor 20 per unit variable overhead 216000 and fixed ove 32356

          A manufacturer reports the following costs to produce 24,000
units in its first year of operations: Direct materials, $24 per
unit, Direct labor, $20 per unit, Variable overhead, $216,000, and
Fixed overhead, $288,000. Of the 24,000 units produced, 23,200 were
sold, and 800 remain in inventory at year-end. Under absorption
costing, the value of the inventory is:
Multiple Choice
$35,200.
$42,400.
$52,000.
$44,800.
$26,400.

Added by Erica P.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

07/31/2023

Step 1

Direct materials per unit = $24 Direct labor per unit = $20 Variable overhead per unit = $216,000 / 24,000 units = $9 Fixed overhead per unit = $288,000 / 24,000 units = $12 Show more…

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A manufacturer reports the following costs to produce 24,000 units in its first year of operations: Direct materials, $24 per unit, Direct labor, $20 per unit, Variable overhead, $216,000, and Fixed overhead, $288,000. Of the 24,000 units produced, 23,200 were sold, and 800 remain in inventory at year-end. Under absorption costing, the value of the inventory is: Multiple Choice $35,200. $42,400. $52,000. $44,800. $26,400.