A company produces a single product. Variable production costs are $13.00 per unit and variable selling and administrative expenses are $4.00 per unit. Fixed manufacturing overhead totals $46,000 and fixed selling and administration expenses total $50,000. Assuming a beginning inventory of zero, production of 5,000 units and sales of 4,100 units, the dollar value of the ending inventory under variable costing would be: Multiple Choice $8,100 $19,800 $15,300 $11,700

$11,700

Explanation:

Given that,

Variable production costs = $13.00 per unit

Variable selling and administrative expenses = $4.00 per unit.

Fixed manufacturing overhead = $46,000

Fixed selling and administration expenses = $50,000

Units produced = 5,000

Units sold = 4,100

Value of the ending inventory under variable costing:

= (Units of Goods produced - Units of goods sold) × Variable manufacturing overhead

= (5,000 - 4,100) × $13

= 900 × $13

= $11,700

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total