The value of the company's inventory on November 30 under absorption costing would be:

A) $54,000
B) $66,000
C) $78,000
D) $81,000

Question

The value of the company's inventory on November 30 under absorption costing would be:A) $54,000B) $66,000C) $78,000D) $81,000

Jasmyne McGee · Accepted Answer

Final Answer : B, Explanation :  Units sold = $1,200,000 ÷ $30 per unit = 40,000 unitsUnits in beginning inventory + Units produced = Units sold + Units in ending inventory8,000 units + 35,000 units = 40,000 units + Units in ending inventoryUnits in ending inventory = 8,000 units + 35,000 units - 40,000 units = 3,000 units

The value of the company's inventory on November 30 under absorption costing would be:

A) $54,000
B) $66,000
C) $78,000
D) $81,000

Definitions

Learning Objectives

Learning Objectives

Related questions