“The Southern Company manufactures a single product. Assume the following data for 19×5: Variable costs per unit: Selling and administrative $14 Production $38 Fixed costs in total: Production $140,000 Selling and administrative $ 84,000 During 19×5, 7,000 units were produced and 6,800 units were sold. Page 23 Version 1 83. The inventory carrying value of finished goods at December 31, 19×5, under variable costing would be a. The same as absorption costing. b. $6,800 greater than under absorption costing. c. $6,800 less than under absorption costing. d. $4,000 less than under absorption costing.”,”4The inventory carrying value of finished goods at December 31, 19×5:Variable Costing = 200 x 38 = $7,600Absorption Costing: = 200 x (38 + (140,000/7000) = $11,60011,600 – 7,600 = 4,000Absorption costing would be $4

“The Southern Company manufactures a single product. Assume the following data for 19×5: Variable costs per unit: Selling and administrative $14 Production $38 Fixed costs in total: Production $140,000 Selling and administrative $ 84,000 During 19×5, 7,000 units were produced and 6,800 units were sold. Page 23 Version 1 83. The inventory carrying value of finished goods at December 31, 19×5, under variable costing would be a. The same as absorption costing. b. $6,800 greater than under absorption costing. c. $6,800 less than under absorption costing. d. $4,000 less than under absorption costing.”,”4The inventory carrying value of finished goods at December 31, 19×5:Variable Costing = 200 x 38 = $7,600Absorption Costing: = 200 x (38 + (140,000/7000) = $11,60011,600 – 7,600 = 4,000Absorption costing would be $4

000 more than variable costing”