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Harris Corporation Produces a Single Product

Question 178

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Harris Corporation produces a single product.Last year,Harris manufactured 17,000 units and sold 13,000 units.Production costs for the year were as follows: Harris Corporation produces a single product.Last year,Harris manufactured 17,000 units and sold 13,000 units.Production costs for the year were as follows:   Sales were $780,000 for the year,variable selling and administrative expenses were $88,400,and fixed selling and administrative expenses were $170,000.There was no beginning inventory.Assume that direct labor is a variable cost. Under absorption costing,the ending inventory for the year would be valued at: A) $190,800 B) $170,000 C) $230,800 D) $0 Sales were $780,000 for the year,variable selling and administrative expenses were $88,400,and fixed selling and administrative expenses were $170,000.There was no beginning inventory.Assume that direct labor is a variable cost. Under absorption costing,the ending inventory for the year would be valued at:


A) $190,800
B) $170,000
C) $230,800
D) $0

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