The Following Information Pertains to Nute Corporation -Refer to the Figure

question 15

Multiple Choice

The following information pertains to Nute Corporation:
$$\begin{array} { l r } \text { Beginning inventory } & 1,000 \text { units } \\\text { Ending inventory } & 6,000 \text { units } \\\text { Direct labour per unit } & \$ 40 \\\text { Direct materials per unit } & 20 \\\text { Variable overhead per unit } & 10 \\\text { Fixed overhead per unit } & 30 \\\text { Variable selling and administrative costs per unit } & 6 \\\text { Fixed selling and administrative costs per unit } & 14\end{array}$$
-Refer to the Figure.What is the value of the ending inventory using the variable costing method?

• A)$240,000
• B)$350,000
• C)$360,000
• D)$420,000

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Definitions:

Equivalent Unit

A measure used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.

Weighted-Average Method

An inventory costing method where the cost of goods sold and ending inventory values are based upon the average cost of all items available for sale during the period.

Process Costing System

An accounting system that accumulates and assigns costs to large volumes of identical products that typically pass through a series of uniform production steps.

Conversion Costs

Expenses related to converting raw materials into finished products, typically encompassing labor and overhead costs.