The accounting records for Moss Manufacturing Company disclosed the following co

Question

The accounting records for Moss Manufacturing Company disclosed the following cost information for 2014: Direct materials Direct labor Fixed manufacturing overhead Variable manufacturing overhead Assume the company produced 10,000 units of inventory, sold 6,000 of these units in 2014 for $196,000, and that there was no beginning finished goods inventory. What amount of ending finished goods inventory will be reported on the balance sheet under variable costing? S60,000 $80,000 $100,000 $20,000 a. $100,000 b.S96,000 C.$64,000 Od. none of these

Explanation / Answer

Units Produced 10000 Costs PU Cost Direct Material 60000 6.00 Direct Labor 80000 8.00 Fixed Manufacturing Overhead 100000 10.00 Variable Manufacturing Overhead 20000 2.00 Unit Cost Under Variable Costing: PU Cost Direct Material 6.00 Direct Labor 8.00 Variable Manufacturing Overhead 2.00 16.00 Units Produced 10000 Less: Units Sold 6000 Closing Units 4000 Closing Stock Value 64000 (4000*16) Answer is C

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