Dollar value of ending inventory utilizing full costing


Q1) Dollar value of ending inventory utilizing full costing will be?

Williams Company presently manufactures 20,000 units of part B13. Present costs for part B13 are as follows:

Direct materials $12
Direct labor     9
Factory rent     7
Administrative     6
General factory overhead     7
Total $41

If company makes decision to purchase part B13, 50% of administrative costs would be avoided. All the Williams Company items (including this part) are produced in same rented production facility.

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Accounting Basics: Dollar value of ending inventory utilizing full costing
Reference No:- TGS019134

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