Crossbow Corp.produces a single product.Data concerning June's operations follow: Under absorption costing, ending inventory on the balance sheet would be valued at:
A)$10, 000
B)$7, 000
C)$9, 000
D)$12, 000

Question

Crossbow Corp.produces a single product.Data concerning June's operations follow:  Under absorption costing, ending inventory on the balance sheet would be valued at:
A)$10, 000 
B)$7, 000 
C)$9, 000 
D)$12, 000

Quizplus · Accepted Answer

Units in ending inventory = Units in beginning inventory + Units produced - Units sold
= 0 units + 6, 000 units - 5, 000 units = 1, 000 units
Unit product cost under absorption costing:
 11eaa0c8_95be_e419_9cb2_9bef72ab1721_TB2487_00 Ending finished goods inventory = $9 per unit × 1, 000 units = $9, 000