Affinity Makes a Single Product, Pool Pumps How Much Will Be Reported for Inventory on the Balance

question 30

Multiple Choice

Affinity makes a single product, pool pumps. Information for 2014 appears below (Assume the same unit costs in all years) : $$\begin{array} { l r } \text { Sales in units } & 5,800 \\\text { Production in units } & 6,200 \\\text { Beginning inventory } & 1,500 \\\text { Variable production cost per unit } & \$ 46.00 \\\text { Variable selling cost per unit } & \$ 6.00 \\\text { Fixed production cost per year } & \$ 31,000 \\\text { Fixed selling and administrative cost per year } & \$ 24,000 \\\text { Selling price per unit } & \$ 75.00\end{array}$$ How much will be reported for inventory on the balance sheet if variable costing is used?

• A) $87,400
• B) $96,900
• C) $108,300
• D) $118,400

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