“Columbia Company Income Statement-Variable Costing Method For the Month ended November 30, 19×4 Sales (40,000 units x $30) $1,200,000 Less Variable Costs: Variable cost of goods sold: Beginning Inventory (8,000 units) $144,000 Variable Cost of Goods Manufactured 630,000 Good Available for Sale $774,000 Ending Inventory (3,000 units) 54,000 Variable Cost of Goods Sold $720,000 Variable Selling Expense 160,000 Total Variable Costs 880,000 Contribution Margin $ 320,000 Fixed Costs: Manufacturing $140,000 Selling and Administrative 35,000 Total Fixed Costs 175,000 Net Income $ 145,000 ÍÍÍÍÍÍÍÍÍÍ During November 19×4, 35,000 units were manufactured. Production costs have remained constant on a per unit basis over the past several months. 82. The dollar value of the company’s inventory on November 30 under the absorption costing method would be: a. $54,000 b. $66,000 c. $78,000 d. $81,000”,”2The dollar value of the company’s inventory on November 30, under the absorption costing method:Fixed manufacturing costs per unit = 140,000 / 35,000=$4Absorption Cost = VC + Absorption = 54,000 + 3000 x $4 =$66
000″