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Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
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| Selling price |
$116 |
| Units in beginning inventory |
0 |
| Units produced |
9,000 |
| Units sold |
8,600 |
| Units in ending inventory |
400 |
| Variable costs per unit: |
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| Direct materials |
$19 |
| Direct labor |
$61 |
| Variable manufacturing overhead |
$7 |
| Variable selling and administrative |
$11 |
| Fixed costs: |
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| Fixed manufacturing overhead |
$135,000 |
| Fixed selling and administrative |
$8,900 |
What is the net operating income for the month under variable costing?
1. A company produces a single product. Variable production costs are $14.0 per unit and variable selling and administrative expenses are $5.0 per unit. Fixed manufacturing overhead totals $56,000 and fixed selling and administration expenses total $60,000. Assuming a beginning inventory of zero, production of 6,000 units and sales of 4,600 units, the dollar value of the ending inventory under variable costing would be: