The Southern Corporation manufactures a single product and has the following cost structure: Last year, 7,490 units were produced and 7,190 units were sold. There was no beginning inventory.The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
A) the same as absorption costing.
B) $7,190 greater than under absorption costing.
C) $7,190 less than under absorption costing.
D) $5,700 less than under absorption costing.

Question

The Southern Corporation manufactures a single product and has the following cost structure:  Last year, 7,490 units were produced and 7,190 units were sold. There was no beginning inventory.The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
A) the same as absorption costing. 
B) $7,190 greater than under absorption costing. 
C) $7,190 less than under absorption costing. 
D) $5,700 less than under absorption costing.

Quizplus · Accepted Answer

The Answer of The Southern Corporation manufactures a single product and has the following cost structure:  Last year, 7,490 units were produced and 7,190 units were sold. There was no beginning inventory.The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
A) the same as absorption costing. 
B) $7,190 greater than under absorption costing. 
C) $7,190 less than under absorption costing. 
D) $5,700 less than under absorption costing.

The Southern Corporation Manufactures a Single Product and Has the Following