Mackenzie,Inc What Is the Ending Balance in Finished Goods Inventory Using

question 190

Multiple Choice

Mackenzie,Inc.has collected the following data.(There are no beginning inventories.) $$\begin{array} { | l | r | c | } \hline \text { Units produced } & 600 & \text { units } \\\hline \text { Sales price } & \$ 120 & \text { per unit } \\\hline \text { Direct materials } & \$ 20 & \text { per unit } \\\hline \text { Direct labor } & \$ 12 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 6 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 17,400 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 5 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 13,700 & \text { per year } \\\hline\end{array}$$ What is the ending balance in Finished Goods Inventory using absorption costing if 550 units are sold? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

• A) $1450
• B) $1900
• C) $4742
• D) $3350

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Definitions:

Money Supply

represents the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in bank accounts.

Interest Rates

The financial charge, calculated as a fraction of the principal, imposed by a lender on a borrower for asset use.

Monetary Multiplier

The ratio of the change in the money supply to the change in reserves, indicating the potential increase in money supply through the banking system.

Legal Reserve Ratio

The minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lend out, often set by central banks.