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In Henderson Company, 50,000 units are produced and 40,000 units are sold. Variable manufacturing costs per unit are $6 and fixed manufacturing costs are $120,000. the cost of the ending finished goods inventory under each costing approach is:

a. absorption costing is $84,000 and variable costing is $60,000
b. absorption costing is $84,000 and variable costing is $75,000
c. absorption costing is $90,000 and variable costing is $60,000
d. absorption costing is $90,000 and variable costing is $75,000

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9401765

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