Krepps Corporation produces a single product. Last year, Krepps manufactured 30,420 units and sold 24,900 units. Production costs for the year were as follows: Sales totaled $1,207,650 for the year, variable selling and administrative expenses totaled $136,950, and fixed selling and administrative expenses totaled $185,562. There was no beginning inventory. Assume that direct labor is a variable cost.Under absorption costing, the ending inventory for the year would be valued at:
A) $214,628
B) $187,128
C) $257,128
D) $248,628

Question

Krepps Corporation produces a single product. Last year, Krepps manufactured 30,420 units and sold 24,900 units. Production costs for the year were as follows:  Sales totaled $1,207,650 for the year, variable selling and administrative expenses totaled $136,950, and fixed selling and administrative expenses totaled $185,562. There was no beginning inventory. Assume that direct labor is a variable cost.Under absorption costing, the ending inventory for the year would be valued at:
A) $214,628 
B) $187,128 
C) $257,128 
D) $248,628

Quizplus · Accepted Answer

The Answer of Krepps Corporation produces a single product. Last year, Krepps manufactured 30,420 units and sold 24,900 units. Production costs for the year were as follows:  Sales totaled $1,207,650 for the year, variable selling and administrative expenses totaled $136,950, and fixed selling and administrative expenses totaled $185,562. There was no beginning inventory. Assume that direct labor is a variable cost.Under absorption costing, the ending inventory for the year would be valued at:
A) $214,628 
B) $187,128 
C) $257,128 
D) $248,628

Krepps Corporation Produces a Single Product