In a period, a company had opening inventory of 31,000 units and closing inventory of 34,000 units. Profits based on marginal costing were $850,500 and on absorption costing were $955,500. If the budgeted total fixed costs for the company was $1,837,500, what was the budgeted level of
A、32,500
B、52,500
C、65,000
D、105,000
A、32,500
B、52,500
C、65,000
D、105,000
【参考答案及解析】
Inventory levels increased by 3,000 units and absorption costing profit is $105,000 higher ($955,500 - $850,500).... Fixed production cost included in inventory increase：=$105,000/3,000 =$35 per unit of inventoryBudgeted fixed costs/ Fixed cost per unit= $1,837,500/$35=52,500 units
Inventory levels increased by 3,000 units and absorption costing profit is $105,000 higher ($955,500 - $850,500).... Fixed production cost included in inventory increase：=$105,000/3,000 =$35 per unit of inventoryBudgeted fixed costs/ Fixed cost per unit= $1,837,500/$35=52,500 units