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33300 units of a product were manufactured in a period during which 33950 units were sold for a total revenue of $1391950. Opening stock of the product was 1700 units. The company uses absorption costing. Unit costs of the product were:
Variable manufacturing costs $16.30
Fixed manufacturing costs $11.60
Variable selling and administration costs $3.40
Fixed selling and administration costs $7.10What was the change in the value of finished goods stock over the period?
A. $10595
B. $18135
C. $24960
D. $29295650 more units were sold than made, so inventory has fallen by 650.
Assuming manufacturing costs per unit are the same per unit for old and new inventory, the value of inventory will have fallen by
650 x (16.30 + 11.60) = 18135
Selling costs are not relevant to inventory values.
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