Problem
Iagan, Inc. has collected the following data. (There are no beginning inventories.)
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Units produced
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600 units
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Sales price
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$110 per unit
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Direct materials
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$40 per unit
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Direct labor
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$13 per unit
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Variable manufacturing overhead
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$5 per unit
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Fixed manufacturing overhead
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$16,000 per unit
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Variable selling and administrative costs
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$6 per unit
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Fixed selling and administrative costs
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$13,000 per unit
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What is the ending balance in Finished Goods Inventory using variable costing if 500 units aresold?