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MaRussiya
13 days ago
14

Cahalane Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 91 Man

ufacturing costs: Variable manufacturing cost per unit produced:
Direct materials $ 12
Direct labor $ 5
Variable manufacturing overhead $ 5
Fixed manufacturing overhead per year $ 432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 4
Fixed selling and administrative expense per year $ 78,000

Year 1 Year 2
Units in beginning inventory 0 1,000
Units produced during the year 9,000 12,000
Units sold during the year 8,000 10,000
Units in ending inventory 1,000 3,000

Which of the following statements is true for Year 2?

A. The amount of fixed manufacturing overhead deferred in inventories is $60,000B. The amount of fixed manufacturing overhead released from inventories is $60,000C. The amount of fixed manufacturing overhead deferred in inventories is $592,000D. The amount of fixed manufacturing overhead released from inventories is $592,000
Business
1 answer:
harina [3.2K]13 days ago
8 0
A. The fixed overhead that is deferred in inventories totals $60,000. Unit product cost Year 1 Year 2 Direct materials $12 $12 Direct labor $5 $5 Variable manufacturing overhead $5 $5 Fixed overhead $48 $36 ($432,000 ÷ 9,000) ($432,000 ÷ 12,000) unit product cost $70 $58 Fixed overhead deferred (1,000 × $48) $48,000 Fixed overhead released -$48,000 Fixed overhead deferred (3,000 × $36) $108,000 Net $48,000 $60,000. The fixed overhead deferred in inventories amounts to $60,000.
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Respuesta:

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Explicación:

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71,913.24 - 79,000 = -7,086.76

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Answer:

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