For the month ended October 31st, there are no finished goods or work in process inventories...

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For the month ended October 31st, there are no finished goods or work in process inventories at the beginning of the month fo

business accounting

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Answer 1

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Under Variable costing, product cost ONLY includes ‘variable’ ‘manufacturing’ cost.
Product cost as per Variable costing
= $ 12600
Product Cost per unit = $ 12600 / 300 units manufactured = $ 42
Units in ending inventory = 300 – 240 units sold = 60 units
Value of ending inventory under Variable costing
= 60 units x $ 42
= $ 2,520
Correct Answer = Option ‘A’ $ 2520

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Answer 2

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For the month ended October 31st, there are no finished goods or work in process inventories...

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