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Jones Company produces a single product. The company manufactured 700 units last year. The ending...

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Question

Accounting

Jones Company produces a single product. The company manufactured 700 units last year. The ending inventory consisted of 100 units. There was no beginning inventory. Variable manufacturing costs were $6.00 per unit and fixed manufacturing costs were $2.00 per unit. What would be the change in the dollar amount of ending inventory if direct costing was used instead of absorption costing?

Group of answer choices

$200 decrease

$200 increase

$800 decrease

$0

Answer & Explanation Solved by verified expert
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