A review of a company’s inventory records for the
A review of a company’s inventory records for the year indicates that the following costs were incurred:
Fixed production overhead: $500,000
Direct material and direct labor: 300,000
Storage costs incurred during production: 25,000
Abnormal waste costs: 30,000
If the company operated at full capacity during the year, the total capitalized inventory cost is closest to:
A.$800,000.
B.$825,000.
C.$855,000.
参考解答
4j0***915
2024-09-09 00:35:57
Ans:B.
The total capitalized costs include fixed production costs, the direct conversion costs of material and labor, storage costs required as part of production but not abnormal waste costs.$500,000 + 300,000 + 25,000 = $825,000.
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