The Browning Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are $2 per unit sold. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900 000 for the year. Information about Browning's production activity for the year is:
What is the value of closing inventory of finished goods under absorption costing?
A) $420 000
B) $240 000
C) $120 000
D) $480 000

Question

The Browning Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are $2 per unit sold. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900 000 for the year. Information about Browning's production activity for the year is: 
What is the value of closing inventory of finished goods under absorption costing?
A) $420 000 
B) $240 000 
C) $120 000 
D) $480 000

Quizplus · Accepted Answer

The Answer of The Browning Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are $2 per unit sold. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900 000 for the year. Information about Browning's production activity for the year is: 
What is the value of closing inventory of finished goods under absorption costing?
A) $420 000 
B) $240 000 
C) $120 000 
D) $480 000

The Browning Company Manufactures a Single Product; the Standard Costs