McFadden,Inc.has collected the following data.(There are no beginning inventories. )

What is the ending balance in Finished Goods Inventory using variable costing if 500 units are sold?
A)$6,400
B)$7,400
C)$3,400
D)$4,000

Question

McFadden,Inc.has collected the following data.(There are no beginning inventories. )

What is the ending balance in Finished Goods Inventory using variable costing if 500 units are sold?
A)$6,400 
B)$7,400 
C)$3,400 
D)$4,000

Quizplus · Accepted Answer

B)Ending Finished Goods Inventory = Unsold units × Total unit product cost* = (700 units produced - 500 units sold)× $37 = $7,400
* Total unit product cost
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