Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. figure 8-5. sanders company has the following info

Figure 8-5. Sanders Company has the following information for last year: ...

50.1K

Verified Solution

Question

Accounting

Figure 8-5. Sanders Company has the following information for last year:

Selling price

$190 per unit

Variable production costs

$52 per unit produced

Variable selling and admin. expenses

$18 per unit sold

Fixed production costs

$240,000

Fixed selling and admin. expenses

$180,000

Units produced

12,000

Units sold

7,000

There were no beginning inventories.

1. Refer to Figure 8-5. What is the value of ending inventory for Sanders using the absorption costing method?

a.

$360,000

b.

$280,000

c.

$220,000

d.

$380,000

2. Refer to Figure 8-5. What is the income for Sanders using the absorption costing method?

a.

$520,000

b.

$480,000

c.

$1,200,000

d.

$500,000

3. Refer to Figure 8-5. What is the cost of ending inventory for Sanders using the variable costing method?

a.

$300,000

b.

$280,000

c.

$120,000

d.

$260,000

4. Refer to Figure 8-5. What is the income for Sanders using the variable costing method?

a.

$420,000

b.

$480,000

c.

$520,000

d.

$500,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students