Barron Company manufactured 150,000 units during the year but only sold 130,000 of these units. At the beginning of the year, Barron had no beginning finished goods inventory. The following unit costs were incurred during the year:
Variable manufacturing cost
$3.00
Variable selling cost
$0.50
Fixed manufacturing cost
$4.00
Fixed selling cost ($300,000 total)
$2.00
Refer to Exhibit 20-5. Using absorption costing, what is the value of Barron’s finished goods inventory at the end of the year?
- $80,000
- $60,000
- $120,000
- $140,000
- Refer to Exhibit 20-5. Using variable costing, what is the value of Barron’s finished goods inventory at the end of the year?
- $60,000
- $140,000
- $120,000
- $80,000
Refer to Exhibit 20-5. If Barron Company sold each unit for $13, what is Barron’s net income for the year using absorption costing?
- $780,000
- $295,000
- $415,000
- $335,000
Refer to Exhibit 20-5. If Barron Company sold each unit for $13, what is Barron’s net income for the year using variable costing?
- $295,000
- $335,000
- $780,000
- $415,000
-I just need the answer no need for explaining the way of solution or the formula, thanks.
