Q4 5 instructions help | Save & Exit | | Submit ) Question 10 (of 12) Time remai

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Q4 5 instructions help | Save & Exit | | Submit ) Question 10 (of 12) Time remaining: 0:38:42 10. Cutterski Corporation manufactures a propeller. Shown below is Cutterski's cost structure: Variable cost Total fixed Manufacturing cost Selling and administrative expense per propelle for the year $1,498,000 $862,500 $128 $40 In its first year of operations, Cutterski produced 85,600 propellers but only sold 75,000 What is the total cost that would be assigned to Cutterski's finished goods inventory at the end of the first year of operations under variable costing? O $1.780,800 O $1,542,300 O $2.088.200 O $1.356800

Explanation / Answer

Answer - (D) 1356800

Inventory Left at the end of the first year is = 85600-75000 = 10600

Total Cost under variable costing method = Inventory left * Variable manufacturing cost = 10600*128= 1356800

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