During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct...
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Accounting
During its first year of operations, the McCormick Company incurred the following manufacturing costs:
Direct materials$ 5per unitDirect labor$ 3per unitVariable overhead$ 4per unitFixed overhead$ 250,000per year
The company produced 25,000 units, and sold 20,000 units, leaving 5,000 units in inventory at year-end. What is the value of ending inventory under absorption costing?
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