Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sierra company incurs the following costs to produ

Sierra Company incurs the following costs to produce and sell its only product. Variable costs...

60.1K

Verified Solution

Question

Accounting

image
Sierra Company incurs the following costs to produce and sell its only product. Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 10 6 3 7 $ 117,000 $ 295,000 During this year, 29,250 units were produced and 25,750 units were sold. The Finished Goods inventory account at the end of this year shows a balance of $66,500 for the 3,500 unsold units. Required: 1-a. Calculate this year's ending balance in Finished Goods inventory two ways-using variable costing and using absorption costing. 1-b. Does it appear that the company is using variable costing or absorption costing to assign costs to the 3,500 units in its Finished Goods inventory? 2. Assume that the company wishes to prepare this year's financial statements for its stockholders. a. Is Finished Goods inventory of $66,500 the correct amount to include on the balance sheet for external reporting purposes? b. What balance should be reported in the Finished Goods inventory account for external reporting purposes

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

Statistics
1.2K views

In the 2008 General Social Survey, incomes of married respondents were classified as above average, average,...

Biology
1.2K views

Which type of name for an organism is more useful when discussing a species with...

Basic Math
1.2K views

A company claims that 9% of the items produced on a newmachine are defective.The factory...

Algebra
1.2K views

The graph of an exponential function is given Find the correct function of the graph...

Algebra
1.2K views

Write the expression as the sum or difference of two logarithmic functions containing no exponents...

Algebra
1.2K views

Find missing angles AMC DMB and DBM in the following figure 70 620

Accounting
1.2K views

Need assistance with step 3. C A S E Friendly Assisted Living Facility...

Accounting
1.2K views

please explain step by step Wyatt Sports' chart of accounts includes the following...

Accounting
1.2K views

Nina Company prepared the following fixed budget for July using 7,580 units for budgeted sales....

Accounting
1.2K views

E. Use Goal Seek in Excel (Data/What If Analysis/Goal Seek) to determine the following: Each...

Accounting
1.2K views

An investor would like to invest in a company that is retaining its earnings for...

Finance
1.2K views

5) Assume that a company issued as stock that offers $2 dividends today. If dividends...