Waterloo Skyline Experienced the Following Costs in 2014 There Was No Beginning Inventory

question 68

Multiple Choice

Waterloo Skyline experienced the following costs in 2014: $\begin{array}{lr}\text { Direct materials } & \$ 3.15 \text { per unit } \\\text { Direct labor } & \$ 2.80 \text { per unit } \\\text { Variable manufacturing overhead } & \$ 1.45 \text { per unit } \\\text { Fixed manufacturing overhead } & \$ 12.60 \text { per unit }\end{array}$ There was no beginning inventory. During the year, the company sold 190,000 units. If net income using full and variable costing was $939,020 and $905,000, respectively, how many units did the company produce in 2014?

• A) 192,700
• B) 2,700
• C) 187,300
• D) 46,951

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Definitions:

Deposits In Transit

Funds that have been deposited by a company but have not yet been recorded by the bank, often resulting in discrepancies in bank reconciliation.

Note Receivable

A financial asset representing a written promise to receive a specific amount of money from a debtor at a future date or on demand.

Bank Service Charge

Fees charged by banks for the use of their services, such as account maintenance and wire transfer fees.

Cash Short

A situation where the actual cash on hand is less than the expected amount, often detected through cash register or petty cash reconciliations.