Shark Corporation
The following information pertains to Shark Corporation: $$\begin{array} { l l }
\text { Beginning inventory } & 0 \text { units } \
\text { Ending Finished Goods Inventory } & 6,000 \text { units } \
\text { Direct labour per unit } & \$ 22 \
\text { Direct materials per unit } & 18 \
\text { Variable manufacturing overhead per unit } & 6 \
\text { Fixed manufacturing overhead per unit } & 12 \
\text { Variable selling costs per unit } & 14 \
\text { Fixed selling costs per unit } & 16
\end{array}$$
-Refer to Shark Corporation. What is the value of ending Finished Goods Inventory using the variable costing method?
A) $276,000
B) $320,000
C) $250,000
D) $390,000

Question

Shark Corporation
The following information pertains to Shark Corporation: $$\begin{array} { l l } 
\text { Beginning inventory } & 0 \text { units } \
\text { Ending Finished Goods Inventory } & 6,000 \text { units } \
\text { Direct labour per unit } & \$ 22 \
\text { Direct materials per unit } & 18 \
\text { Variable manufacturing overhead per unit } & 6 \
\text { Fixed manufacturing overhead per unit } & 12 \
\text { Variable selling costs per unit } & 14 \
\text { Fixed selling costs per unit } & 16
\end{array}$$
-Refer to Shark Corporation. What is the value of ending Finished Goods Inventory using the variable costing method?
A) $276,000
B) $320,000
C) $250,000
D) $390,000

Quizplus · Accepted Answer

Under variable costing, only variable costs are included in inventory valuation. The variable costs per unit are direct labor ($22), direct materials ($18), and variable manufacturing overhead ($6), totaling $46 per unit. Therefore, the value of ending inventory is 6,000 units x $46 = $276,000.

Shark Corporation the Following Information Pertains to Shark Corporation -Refer to Shark Corporation

Shark Corporation
the Following Information Pertains to Shark Corporation -Refer to Shark Corporation