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What is the total cost that would be assigned

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Question - Dora Corporation manufactures a propeller. Shown below is Dora's cost structure:

 

Variable cost per propeller

Total fixed cost for the year

Manufacturing cost

P114

P810,000

Selling and administrative

P20

P243,000

In its first year of operations, Dora produced 60,000 propellers but only sold 54,000.

Required - What is the total cost that would be assigned to Eudora's finished goods inventory at the end of the first year of operations under the variable costing method?

Reference no: EM132714278

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