Figure 8-8

question 102

Multiple Choice

Figure 8-8. Steele Corporation has the following information for January,February,and March 2011:
Production costs per unit (based on 10,000 units) are as follows:
There were no beginning inventories for January 2011,and all units were sold for $50.Costs are stable over the three months.
Refer to Figure 8-8.What is the January ending inventory for Steele Corporation using the variable costing method?

• A)$260,000
• B)$78,000
• C)$108,000
• D)$90,000

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Definitions:

Phillips Curve

A concept in economics illustrating an inverse relationship between the rate of unemployment and the rate of inflation within an economy.

Sticky-wage Theory

The sticky-wage theory suggests that wages respond slowly to changes in the economy, which can lead to unemployment or labor market imbalances.

Aggregate Demand

The total demand for goods and services within an economy at a given overall price level and in a given time period.

Short-run Phillips Curve

A graphical representation showing the inverse relationship between the rate of unemployment and the rate of inflation in an economy over the short term.