Accounting · Inventories
A manufacturing company uses absorption costing. During the period, it incurred 200,000 in fixed production overheads and 150,000 in variable production overheads. It produced 10,000 units and sold 8,000 units. The normal capacity of the plant is 20,000 units. Under IAS 2, what is the total overhead amount included in the valuation of the closing inventory of 2,000 units?
- 140,000
- 270,000
- 360,000
- 450,000✓
Correct answer
50,000
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