Multiple Choice
Richardson Company
The following information is available for Richardson Company for its first year of operations:
| Sales in units | 5,000 |
| Production in units | 8,000 |
| Manufacturing costs: | |
| Direct labor | $3 per unit |
| Direct material | $5 per unit |
| Variable overhead | $1 per unit |
| Fixed overhead | $100,000 |
| Net income (absorption method) | $30,000 |
| Sales price per unit | $40 |
Refer to Richardson Company.If Richardson Company were using variable costing,what would it show as the value of ending inventory?
A) $120,000
B) $64,500
C) $27,000
D) $24,000
Correct Answer:
Verified
Correct Answer:
Verified
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