WebFlicks Is an Online DVD Company That Produces Its Own

question 103

Multiple Choice

WebFlicks is an online DVD company that produces its own DVD copies of first-run movies that it sells for $8.00 each. The following information is available (Assume the same unit costs in all years) : $\begin{array}{ll}\text { Variable costs: }\\\text { Product royalty fees } & \$ 3.30 \text { per DVD } \\\text { DVD production } & \$ 1.20 \text { per DVD } \\\text { Selling and admin costs } & \$ 0.80 \text { per DVD }\\\text { Fixed Costs: }\\\text { Production } & \$ 128,000 \text { per month } \\\text { Selling and administration } & \$ 130,000 \text { per month }\end{array}$ During June, 160,000 DVDs were produced and 144,000 were sold. There were 17,000 DVDs in beginning inventory. How much is inventory at the end of the month under variable costing?

• A) $72,000
• B) $148,500
• C) $174,900
• D) $84,800

---

Definitions:

Rapid Response

The ability to react quickly and effectively to unexpected situations or changes, often crucial in emergency or customer service scenarios.

On-Time Delivery

The process of delivering goods or services to customers at the promised or scheduled time without delays.

Supply Chain Management

The administration of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Supply Chain Strategy

A plan for managing all the steps necessary to produce and deliver products or services to customers, from sourcing raw materials to the final delivery.