Question

During 2022, its first year of operations, ABC Company produced 15,000 units and sold 13,000 units. During 2023, ABC Company produced 26,000 units and sold 17,000 units. The following information was taken from ABC's accounting records for 2022 and 2023: Direct materials cost per unit Direct labor cost per unit Variable overhead cost per unit Variable selling & admin cost per unit Fixed overhead (total cost) Fixed selling & admin (total cost) 2022 2023 $8 $9 $5 $7 $3 $5 $2 $2 $162,000 $169,000 $117,000 $117,000 Assume the selling price of ABC Company's product was $42 per unit for both years. Calculate the dollar amount of ABC Company's finished goods inventory that would appear on the December 31, 2022 balance sheet using absorption costing.

          During 2022, its first year of operations, ABC Company produced 15,000
units and sold 13,000 units. During 2023, ABC Company produced 26,000
units and sold 17,000 units. The following information was taken from
ABC's accounting records for 2022 and 2023:
Direct materials cost per unit
Direct labor cost per unit
Variable overhead cost per unit
Variable selling & admin cost per unit
Fixed overhead (total cost)
Fixed selling & admin (total cost)
2022
2023
$8
$9
$5
$7
$3
$5
$2
$2
$162,000
$169,000
$117,000
$117,000
Assume the selling price of ABC Company's product was $42 per unit for
both years.
Calculate the dollar amount of ABC Company's finished goods inventory
that would appear on the December 31, 2022 balance sheet using absorption
costing.

During 2022, its first year of operations, ABC Company produced 15,000
units and sold 13,000 units. During 2023, ABC Company produced 26,000
units and sold 17,000 units. The following information was taken from
ABC's accounting records for 2022 and 2023:
Direct materials cost per unit
Direct labor cost per unit
Variable overhead cost per unit
Variable selling admin cost per unit
Fixed overhead (total cost)
Fixed selling admin (total cost)
2022
2023
89
57
35
22
162,000169,000
117,000117,000
Assume the selling price of ABC Company's product was 42 per unit for
both years.
Calculate the dollar amount of ABC Company's finished goods inventory
that would appear on the December 31, 2022 balance sheet using absorption
costing.

Added by Irene C.

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