Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in 2021, abs had a variable manufacturing cost of

In 2021, ABS had a variable manufacturing cost of $14,400 and a fixed manufacturing overhead...

60.1K

Verified Solution

Question

Accounting

In 2021, ABS had a variable manufacturing cost of $14,400 and a fixed manufacturing overhead of $4,000. The company had sold 4,800 units representing 60% of the units manufactured. The initial inventory of finished goods was zero. Which of the following statements would be true? Options for Question 19: a) Under the variable cost method, the cost of ending inventory would be valued at $7,360

b) The net income under the full cost method would be $5,760 higher than the net income under the variable cost method.

c) The ending inventory under the variable cost method would be $1,600 less than the ending inventory under the full cost method.

d) No answer is appropriate

e) The net income under full costing would be $1,600 less than the net income under variable costing.

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