Figure 8-1. Last year,Fabre Company produced 20,000 units and sold 18,000 units at a price of $12.Costs for last year were as follows:
Fixed factory overhead is applied based on expected production.Last year,Fabre expected to produce 20,000 units.
Refer to Figure 8-1.Assuming that beginning inventory was zero,what is the value of ending inventory under variable costing?
A)$3,300
B)$2,500
C)$5,000
D)$3,720
E)$7,200

Question

Figure 8-1. Last year,Fabre Company produced 20,000 units and sold 18,000 units at a price of $12.Costs for last year were as follows:
 Fixed factory overhead is applied based on expected production.Last year,Fabre expected to produce 20,000 units.
Refer to Figure 8-1.Assuming that beginning inventory was zero,what is the value of ending inventory under variable costing?
A)$3,300 
B)$2,500 
C)$5,000 
D)$3,720 
E)$7,200

Quizplus · Accepted Answer

The Answer of Figure 8-1. Last year,Fabre Company produced 20,000 units and sold 18,000 units at a price of $12.Costs for last year were as follows:
 Fixed factory overhead is applied based on expected production.Last year,Fabre expected to produce 20,000 units.
Refer to Figure 8-1.Assuming that beginning inventory was zero,what is the value of ending inventory under variable costing?
A)$3,300 
B)$2,500 
C)$5,000 
D)$3,720 
E)$7,200