During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its only product: The company also incurred the following costs in selling 7,500 units of product during its first year: Assume that direct labor is a variable cost. Under absorption costing, what is the total cost that would be assigned to Carlos' finished goods inventory at the end of the first year of operations?
A)$15,000
B)$42,125
C)$44,000
D)$47,125

Question

During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its only product:  The company also incurred the following costs in selling 7,500 units of product during its first year:  Assume that direct labor is a variable cost. Under absorption costing, what is the total cost that would be assigned to Carlos' finished goods inventory at the end of the first year of operations?
A)$15,000 
B)$42,125 
C)$44,000 
D)$47,125

Quizplus · Accepted Answer

The Answer of During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its only product:  The company also incurred the following costs in selling 7,500 units of product during its first year:  Assume that direct labor is a variable cost. Under absorption costing, what is the total cost that would be assigned to Carlos' finished goods inventory at the end of the first year of operations?
A)$15,000 
B)$42,125 
C)$44,000 
D)$47,125

During Its First Year of Operations, Carlos Manufacturing Corporation Incurred