Beiber Boxers Contribution Income Statement Utilizing Variable Costing for 2014

question 1

Multiple Choice

Beiber Boxers contribution income statement utilizing variable costing for 2014 appears below: $\begin{array}{ll}\text { Sales (\$12 per unit) }&&\$78,000\\\text { Less variable costs: }\\\text { Cost of goods sold }&\$26,000\\\text { Selling \& administrative }&9,750&35,750\\\text { Contribution margin }&&42,250\\\text { Less fixed costs: }\\\text { Manufacturing overhead } & 12,600 & \\\text { Selling \& administrative costs } & 14,950 & 27,550\\\text { Net income }&&\$14,700\end{array}$
The company produced 7,000 units during the year. Variable and fixed production costs have remained constant the entire year. There were no beginning inventories. How much is the dollar value of the ending inventory using full costing?

• A) $2,000
• B) $2,900
• C) $3,850
• D) None of these answer choices are correct.

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Definitions:

Inventory Levels

The quantity of goods or materials on hand at any given time within a business, critical for meeting customer demand and operational efficiency.

Grid Technique

A strategic planning tool used to evaluate and prioritize ideas or options by placing them on a grid based on two criteria.

Geographic Grid

A system of imaginary lines (latitude and longitude) that are used to pinpoint locations on the surface of the Earth.