whitney, Inc produces a single product. The following data pertain to one month\'s operations: Units in beginning inventory                         0 Units produced                                            10,600 Units sold                                                     9,600 Variable costs per unit: manufacturing                                              $12.40 Selling and administrative                            $7.20 Fixed costs in total manufacturing                                                  19,000 Selling and administrative                                 28,000 The carrying value on the balance sheet of the ending finished goods inventory under variable costing would be: A. 19,600 B. 12,400 C. 15,000 D. 14,400 Solution Hi, Please find the detailed answer as follows: Ending Inventory = Production - Sales = 10600 - 9600 = 1000 Variable Cost Under Variable Cost Method = Manufacturing Cost Per Unit = 12.40 Value of Ending Inventory = Ending Inventory*Variable Cost = 1000*12.40 = $12400 Option B ($12400) is the correct answer. Thanks. .

1. whitney, Inc produces a single product. The following data pertain to one month's operations:
Units in beginning inventory 0
Units produced 10,600
Units sold 9,600
Variable costs per unit:
manufacturing $12.40
Selling and administrative $7.20
Fixed costs in total
manufacturing 19,000
Selling and administrative 28,000
The carrying value on the balance sheet of the ending finished goods inventory under variable
costing would be:
A. 19,600
B. 12,400
C. 15,000
D. 14,400
Solution
Hi,
Please find the detailed answer as follows:

2. Ending Inventory = Production - Sales = 10600 - 9600 = 1000
Variable Cost Under Variable Cost Method = Manufacturing Cost Per Unit = 12.40
Value of Ending Inventory = Ending Inventory*Variable Cost = 1000*12.40 = $12400
Option B ($12400) is the correct answer.
Thanks.