This paper circulates around the core theme of Under absorption costing, the carrying value on the balance sheet of the ending inventory for the year would be together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
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
