Posted: July 6th, 2016

What is the cost of ending inventory on April 30th?

Sampson Apparel Incorporated incurred actual variable overhead expenses of $62,000 in the current year for the production of 10,000 units. Variable overhead was applied at a rate of $2.00 per direct labor hour and 3 direct labor hours were budgeted for each unit. The company used 29,000 direct labor hours for production. What was Sampson’s variable overhead spending variance?
A. $4,000 U
B. $4,000 F.
C. $2,000 U.
D. $2,000 F.This company uses a perpetual inventory system with a weighted average inventory costing method. The following information is available for the month of April.

April 1 On hand, 30 units at $5.00 each $150
8 Purchased 40 units at $5.35 each 214
15 Sold 50 units
22 Purchased 40 units at $5.20 each 208
30 On hand, 60 units

What is the cost of ending inventory on April 30th?