The Following Information Is Available for Barnes Company for the Fiscal

question 58

Multiple Choice

The following information is available for Barnes Company for the fiscal year ended December 31:
$\begin{array}{llr} \text { Beginning finished goods inventory in units } &0\\ \text {Units produced } &4,800\\ \text { Units sold } &4,000\\ \text { Sales } &\$400,000\\ \text { Materials cost } &\$96,000\\ \text { Variable conversion cost used } &\$48,000\\ \text { Fixed manufacturing cost} &\$72,000\\ \text { Indirect operating costs (fixed) } &\$80,000\\\end{array}$

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Cost of goods sold using variable costing is:

• A) $110,000
• B) $120,000
• C) $144,000
• D) $40,000

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Definitions:

Planning Budget

A financial plan that outlines the expected revenues, expenses, and goals of an organization for a specific period.

Other Expenses

Costs not directly related to the production of goods or services, such as interest payments or losses from asset sales.

Activity Variance

The difference between the budgeted amount of activity and the actual amount of activity, often analyzed in budgeting and costing practices.

Selling

The act of transferring ownership of a product or service from one entity to another in exchange for money, goods, services, or other forms of value.