Crossbow Corp.produces a single product.Data concerning June's operations follow: Under variable costing, ending inventory on the balance sheet would be valued at:
A)$10, 000
B)$7, 000
C)$9, 000
D)$12, 000

Question

Crossbow Corp.produces a single product.Data concerning June's operations follow:  Under variable costing, ending inventory on the balance sheet would be valued at:
A)$10, 000 
B)$7, 000 
C)$9, 000 
D)$12, 000

Quizplus · Accepted Answer

Under variable costing, only variable manufacturing costs are included in the cost of inventory. Therefore, the ending inventory on the balance sheet would be valued at the variable manufacturing costs of $7,000.