A company has sales of $100,000, ending finished goods inventory of $9,000, variable manufacturing costs of $50,000, and fixed manufacturing costs of $28,000 for the year. Assuming the company uses direct costing, the manufacturing margin for the year is

Question

Quizplus · Accepted Answer

Manufacturing Margin = Sales - Variable Manufacturing Costs - Fixed Manufacturing Costs - Ending Finished Goods Inventory
Manufacturing Margin = $100,000 - $50,000 - $28,000 - $9,000
Manufacturing Margin = $59,000

A Company Has Sales of $100,000, Ending Finished Goods Inventory