Krepps Corporation Produces a Single Product

question 246

Multiple Choice

Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost.
Under absorption costing, the ending inventory for the year would be valued at:

• A) $0
• B) $216,000
• C) $248,250
• D) $180,000

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Definitions:

Cone Scale

The woody or protective segment of a cone in coniferous plants, which bears the reproductive structures.

Ovules

The structure in seed plants that develops into a seed after fertilization, containing the female reproductive cells.

Gnetophyte Genus

A classification within Gnetophyta, a division of plants that have some angiosperm-like features but are considered gymnosperms.

Southwestern Africa

A region in Africa that includes countries like Namibia and Angola, characterized by diverse ecologies and cultures.