D isnt my answer. I just had to select one. Dillon Company incurred the followin

Question

D isnt my answer. I just had to select one.

Dillon Company incurred the following costs while producing 550 units: direct materials, $9 per unit, direct labor, $27 per unit, variable manufacturing overhead, $19 per unit, total fixed manufacturing overhead costs, $9,900, variable selling and administrative costs, S6 per unit, total fixed selling and administrative costs, $6,600. There are no beginning inventories. What is the ending balance in Finished Goods Inventory using variable costing if 360 units are sold? O A. $4,950 B. $11,590 O C. $6,840 O D. $10,450

Explanation / Answer

Calculate ending balance in finished goods inventory :

Unit product cost under variable costing = (9+27+19) = 55 per unit

Ending inventory balance under variable costing = (550-360)*55 = 10450

so answer is d) $10450

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