Question

a company produces a single product. Assuming a beginning inventory of 0, production of 6000 units and sales of 5,600 units, the dollar value of the ending inventory under variable costing would be

Answer 1

$8,400

Step-by-step explanation:

The computation of the dollar value of the ending inventory under variable costing is shown below:

The value of the ending inventory is

= (Production units - sales units) × variable production cost

= (6,000 units - 5,600 units) × $21

= $8,400

We simply applied the above formula

And, the same is to be considered