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venugopal
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| Posted: 14 Nov 2009 at 17:59 | IP Logged
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I don't know any sites but I think that many wiley questions are twisted enough.
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muskhere
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| Posted: 14 Nov 2009 at 18:30 | IP Logged
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how to solve this
3.
Selected information concerning the operations of a company for the year ended December 31 is as
follows:
Units produced 20,000
Units sold 18,000
Direct materials used $80,000
Direct labor incurred $40,000
Fixed factory overhead $50,000
Variable factory overhead $24,000
Fixed selling and administrative expenses $60,000
Variable selling and administrative expenses $9,000
Work-in-process inventories at the beginning and end of the year were zero. What was the company's
finished goods inventory cost at December 31 under the variable (direct) costing method?
a. $23,900
b. $19,400
c. $17,000
d. $14,400
Solution:
Choice "d" is correct.
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venugopal
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| Posted: 14 Nov 2009 at 18:53 | IP Logged
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Total Variable Manufacturing cost = DL+ DM + Variable overhead
so total variable cost of manufacturing = 80,000+40,000 + 24,000 = 144,000
Unit manufacturing cost = 144,000/20,000 = 7.2 per unit
Finished goods units are 2,000 so cost is 2,000*7.2 = 14,400
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cpagoal2009
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| Posted: 14 Nov 2009 at 19:02 | IP Logged
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finished goods inventory cost under the variable (direct) costing method
includes variable product cost.
Total variable cost of 20000 units produced:
DM +DL+ VFOH
80000+40000+24000=$144000
So for 2000 finished goods inventory cost = ($144000/20000)*2000units
=$14400
Variable selling and administrative expenses $9,000 is a period exp.
I hope this helps.
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muskhere
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| Posted: 14 Nov 2009 at 19:05 | IP Logged
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thanks...
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Topic: BEC PROBLEM
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