Walker’s Manufacturing Began Its Operations on January 1 of the Current

question 41

Short Answer

Walker’s Manufacturing began its operations on January 1 of the current year. Walker produced 10,000 units during the year, sold 8,000 units at an average cost of $22 per unit, and had 2,000 units in ending inventory. Variable production cost were $14 per unit, variable selling expenses were $2 per unit, fixed overhead totaled $12,000, and fixed selling and administrative expenses totaled $30,000. Under variable costing, what was Walker’s ending inventory on the balance sheet?
A) $8,000
B) $28,000
C) $30,000
D) $30,400

• A) $8,000
• B) $28,000
• C) $30,000
• D) $30,400

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Definitions:

Liberia

A country on the West African coast established by the American Colonization Society as a colony for former African American slaves and their free black counterparts.

Catholic Viewpoint

Perspectives, beliefs, or doctrines of the Roman Catholic Church, including its teachings on moral, theological, and societal issues.

Protestant Viewpoint

A perspective or belief system within Christianity that originated with the Reformation, challenging the authority and practices of the Catholic Church and emphasizing the importance of scripture and faith.

Nineteenth Century

The period of time from 1801 to 1900, known for industrialization and modernization.