Use the Following Information for Questions Below
a Company Had

question 20

Multiple Choice

Use the following information for questions below
A company had the following inventory activity during June:
$\begin{array}{lrrr}&{\text { Units }}& {\text { Unit Cost }} & {\text { Total Cost }}\\\hline&450 & \$ 9.50 & \$ 4,275\\Beginning~ inventory~ Purchases:\\~~~~~~~~~~~June ~5&1,500 & 10.00 & 15,000 \\~~~~~~~~~~~June ~13&900 & 10.25 & 9,225 \\Sales:\\~~~~~~~~~~~June~ 8&1,100 & & \\~~~~~~~~~~~June~ 24&600 & &\end{array}$
-If the company is using a weighted-average cost formula and a periodic system,what is the ending inventory closest to?

• A)$11,925
• B)$11,415
• C)$11,500
• D)$11,585

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Definitions:

Fixed Manufacturing Overhead

The total of all costs that remain constant regardless of the level of production, including expenses such as rent, utilities, and salaries of permanent staff in a manufacturing setting.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overhead costs.

Segmented Income Statement

A financial statement that breaks down income, expenses, and profit margins by specific segments, such as products, services, or geographical regions, within a company.

Contribution Format

A style of income statement presentation that separates fixed costs from variable costs, highlighting the contribution margin.