Find the value of the ending finished goods inventory

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Question - Dish Corporation produces a single product. Selected information concerning the operations of the company follow:

Units produced 10,000 Units sold 9,000 Direct materials $40,000 Direct labor $20,000

Units in beginning inventory 0

Variable manufacturing overhead $12,000

Fixed manufacturing overhead $25,000

Variable selling and administrative expenses $4,500

Fixed selling and administrative expenses $30,000

Assume that direct labor is a variable cost.

Under variable costing, find the value of the ending finished goods inventory?

a. $9,700

b. $7,650

c. $8,000

d. $7,200

Reference no: EM132942205

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