Brady Ltd. uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred: The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods. The fixed overhead in cost of goods sold amounted to
A) $90,000
B) $66,960
C) $72,000
D) $84,960

Question

Brady Ltd. uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred:  The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods. The fixed overhead in cost of goods sold amounted to
A) $90,000 
B) $66,960 
C) $72,000 
D) $84,960

Quizplus · Accepted Answer

The Answer of Brady Ltd. uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred:  The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods. The fixed overhead in cost of goods sold amounted to
A) $90,000 
B) $66,960 
C) $72,000 
D) $84,960

Brady Ltd Uses a Normal Absorption Costing System in Which the the Overhead