Guthrie Corporation the Following Information Is Available for Guthrie Corporation

question 79

Multiple Choice

Guthrie Corporation The following information is available for Guthrie Corporation for the current year:
All materials are added at the start of production.
Refer to Guthrie Corporation.Assume that the FIFO EUP cost for material and conversion are $1.50 and $4.75,respectively.Using FIFO what is the total cost assigned to the units transferred out?

• A)$414,194
• B)$339,094
• C)$445,444
• D)$396,975

---

Definitions:

Economically Break Even

The point where total revenues equal total costs, resulting in zero economic profit.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent or salaries.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for competition on factors other than price.

Profit-Maximizing Level

The point at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.