Balance sheet of the ending inventory


Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:

Production Cost Data

Direct materials
$153,000

Direct labor
$110,500

Variable manufacturing overhead
$204,000

Fixed manufacturing overhead
$255,000

Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost.Under absorption costing, the carrying value on the balance sheet of the ending inventory for the year would be?

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Accounting Basics: Balance sheet of the ending inventory
Reference No:- TGS0712866

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