From the Following Information, Determine the Amount of Ending Inventory

question 54

Multiple Choice

From the following information, determine the amount of ending inventory.

• A) $23,000
• B) $32,000
• C) $33,000
• D) $22,000

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Definitions:

Standard Quantity

The expected quantity of materials or labor hours needed to produce a unit of product, set during the budgeting or planning process.

Standard Hours Allowed

The amount of time that should have been taken to complete a task or produce a certain quantity of goods, based on predetermined standards.

Actual Output

Refers to the actual quantity of goods or services produced by a company, differentiating from planned or projected output.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.