Rosewood Corporation produces a single product. The following cost structure applied to its first year of operations: Variable costs: SG&A $2 per unit Production $4 per unit Fixed costs (total cost incurred for the year): SG&A $14,000 Production $20,000 Refer to Rosewood Corporation. Assume for this question only that Rosewood Corporation manufactured 5,000 units and sold 4,000 in the current
year. If Rosewood employs a costing system based on variable costs, the company would end the current year with a finished goods inventory of
a. $4,000.
b. $8,000.
c. $6,000.
d. $5,000.
A
1,000 units * $4.00 variable cost per unit = $4,000
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