What would be the change in the dollar amount


Fleet, Inc. manufactured 700 units of Product A, a new product, in 2001. Product A's variable and fixed manufacturing costs per unit were $6.00 and $2.00, respectively. The inventory of Product A on December 31, 2001 consisted of 100 units. There was no inventory of Product A on January 1, 2001.

Required:

What would be the change in the dollar amount of inventory on December 31, 2001 if the variable costing method was used instead of the absorbption costing method?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What would be the change in the dollar amount
Reference No:- TGS0698871

Expected delivery within 24 Hours