Richardson Company The following information is available for Richardson Company for its first year of operations:

Sales in units 5,000

Production in units 8,000

Manufacturing costs:

Direct labor $3 per unit

Direct material $5 per unit

Variable overhead $1 per unit

Fixed overhead $100,000

Net income (absorption method) $30,000

Sales price per unit $40

Refer to Richardson Company.If Richardson Company were using variable costing,what would it show as the value of ending inventory? A)$120,000 B)$64,500 C)$27,000 D)$24,000

Question

Richardson Company The following information is available for Richardson Company for its first year of operations:

Sales in units	5,000
Production in units	8,000
Manufacturing costs:
Direct labor	$3 per unit
Direct material	$5 per unit
Variable overhead	$1 per unit
Fixed overhead	$100,000
Net income (absorption method)	$30,000
Sales price per unit	$40

Refer to Richardson Company.If Richardson Company were using variable costing,what would it show as the value of ending inventory? A)$120,000 B)$64,500 C)$27,000 D)$24,000

Quizplus · Accepted Answer

The Answer of Richardson Company The following information is available for Richardson Company for its first year of operations:

Sales in units	5,000
Production in units	8,000
Manufacturing costs:
Direct labor	$3 per unit
Direct material	$5 per unit
Variable overhead	$1 per unit
Fixed overhead	$100,000
Net income (absorption method)	$30,000
Sales price per unit	$40

Refer to Richardson Company.If Richardson Company were using variable costing,what would it show as the value of ending inventory? A)$120,000 B)$64,500 C)$27,000 D)$24,000

Richardson Company The Following Information Is Available for Richardson Company for Its