DeAnne Company produces a single product. The company\'s variable costing income

Question

DeAnne Company produces a single product. The company's variable costing income statement for August appears below: DeAnne Company Income Staement For the month ended August 31 Sales ($23 per unit) $ 933,800 -------------------------------------------------------------------------------- Variable expenses: Variable cost of goods sold 609,000 Variable selling expense 121,800 -------------------------------------------------------------------------------- Total variable expenses 730,800 -------------------------------------------------------------------------------- Contribution margin 203,000 -------------------------------------------------------------------------------- Fixed expenses: Fixed manufacturing 142,000 Fixed selling and administrative 35,500 -------------------------------------------------------------------------------- Total fixed expenses 177,500 -------------------------------------------------------------------------------- Net operating income $ 25,500 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- The company produced 35,500 units in August and the beginning inventory consisted of 8,670 units. Variable production costs per unit and total fixed costs have remained constant over the past several months. Under absorption costing, the ending inventory for the month ended August 31 would be reported at: $53,550 $78,540 $67,830 $83,540

Explanation / Answer

$78,540

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