Whitney, Inc., produces a single product. The following data pertain to one month's operations:
-The carrying value on the balance sheet of the ending finished goods inventory under variable costing would be:
A)$16,000
B)$10,000
C)$19,000
D)$12,000

Question

Whitney, Inc., produces a single product. The following data pertain to one month's operations: 
-The carrying value on the balance sheet of the ending finished goods inventory under variable costing would be:
A)$16,000 
B)$10,000 
C)$19,000 
D)$12,000

Quizplus · Accepted Answer

Under variable costing, only variable production costs are included in the inventory valuation. The carrying value would be calculated based on these costs, which aligns with the $10,000 option.