Vignette #3 Whistler, Inc., manufactures a specialized snowboard made for the advanced snowboarder. Whistler began 2014 with an inventory of 240 snowboards. During the year, it produced 900 boards and sold 995 for $750 each. Fixed production costs were $280,000, and variable production costs were $325 per unit. Whistler uses a denominator level of 1,000 units. Production-volume variances are written off to cost of goods sold. Fixed advertising, marketing, and other general and administrative expenses were $112,000, and variable shipping costs were $15 per board. Assume that the cost of each unit in beginning inventory is equal to 2014 inventory cost. 8. Using variable costing, the value of the 2014 beginning inventory (in USD) is closest to 9. 10. A. 78,000 B. 180,000 C. 81,600 Using variable costing, the breakeven quantity of snowboards (in units) to cover fixed costs is closest to A. 520 B. 960 C. 1,150 Under absorption costing, the ending inventory (in units) of snowboards is closest to A. 335 B. 245 C. 145

Vignette #3 Whistler, Inc., manufactures a specialized snowboard made for the advanced snowboarder. Whistler began 2014 with an inventory of 240 snowboards. During the year, it produced 900 boards and sold 995 for $750 each. Fixed production costs were $280,000, and variable production costs were $325 per unit. Whistler uses a denominator level of 1,000 units. Production-volume variances are written off to cost of goods sold. Fixed advertising, marketing, and other general and administrative expenses were $112,000, and variable shipping costs were $15 per board. Assume that the cost of each unit in beginning inventory is equal to 2014 inventory cost. 8. Using variable costing, the value of the 2014 beginning inventory (in USD) is closest to 9. 10. A. 78,000 B. 180,000 C. 81,600 Using variable costing, the breakeven quantity of snowboards (in units) to cover fixed costs is closest to A. 520 B. 960 C. 1,150 Under absorption costing, the ending inventory (in units) of snowboards is closest to A. 335 B. 245 C. 145

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Description: Vignette #3Whistler, Inc., manufactures a specialized snowboard made for the advancedsnowboarder. Whistler began 2014 with an inventory of 240 snowboards. During theyear, it produced 900 boards and sold 995 for $750 each. Fixed production costs were

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 16E: During its first year of operations, Snobegon, Inc. (located in Lake Snobegon, Minnesota), produced...

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