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Mobile,Inc

Question 19

Multiple Choice

Mobile,Inc. ,manufactured 700 units of Product A,a new product,during the year.Product A's variable and fixed manufacturing costs per unit were $6.00 and $2.00,respectively.The inventory of Product A on December 31 of the year consisted of 100 units.There was no inventory of Product A on January 1 of the year.What would be the change in the dollar amount of inventory on December 31 if variable costing were used instead of absorption costing?


A) $800 decrease
B) $200 decrease
C) $600 decrease
D) $200 increase

Correct Answer:

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