Answer :- Calculation of the carrying value on the balance sheet of the Ending Inventory of finished goods under Variable Costing:-
Fixed Manufacturing Overhead per unit = Fixed Manufacturing Overhead / Units produced
Fixed Manufacturing Overhead per unit = $217,210 / 7,490
Fixed Manufacturing Overhead per unit = $29 per unit
Units in Ending Inventory = 7,490 - 7,390 = 100 units
Manufacturing Overhead deferred in ( released from) Inventory = Fixed Manufacturing overhead in Ending Inventory - Fixed Manufacturing overhead in Beginning Inventory
= ($29 *100 ) - $0
= $2,900
therefore Inventory will be $2,900 less under Variable costing than under absorption costing.
So the correct answer is option A. If you have any query ask in comment section. If you like the answer plz rate. Thanks
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