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Under absorption costing, the carrying value on the balance sheet of the ending inventory for the year would be

05 / 03 / 2018 Assignment

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Harris Company produces a single
product. Last year, Harris manufactured 17,000 units and sold 13,000 units.
Production costs for the year were as follows:

Production Cost Data

Direct materials

$153,000

Direct labor

$110,500

Variable manufacturing overhead

$204,000

Fixed manufacturing overhead

$255,000

Sales were $780,000 for the year,
variable selling and administrative expenses were $88,400, and fixed selling
and administrative expenses were $170,000. There was no beginning inventory.
Assume that direct labor is a variable cost.

Under absorption costing, the
carrying value on the balance sheet of the ending inventory for the year would
be


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