Hall Enterprises Has Budgeted Variable and Fixed Manufacturing Costs of $90,000

Essay

Hall Enterprises has budgeted variable and fixed manufacturing costs of $90,000 and $51,000, respectively. The budgets are based on producing 3,000 units. For the same budget period, variable and fixed operating expenses were budgeted at $12,000 and $24,000, respectively. Hall Enterprises currently uses variable costing. Assuming no beginning inventory for the period, all 3,000 units were produced, and the company sold 2,700 units, how much in COGS did the company report for the year? How much inventory cost will be on the balance sheet at year end?