Iagan,IncHas Collected the Following Data What Is the Ending Balance in Finished Goods Inventory Using

question 78

Multiple Choice

Iagan,Inc.has collected the following data.(There are no beginning inventories.) $$\begin{array} { | l | r | c | } \hline \text { Units produced } & 700 & \text { units } \\\hline \text { Sales price } & \$ 150 & \text { per unit } \\\hline \text { Direct materials } & \$ 30 & \text { per unit } \\\hline \text { Direct labor } & \$ 10 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 10 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 17,300 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 6 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 17,200 & \text { per year } \\\hline\end{array}$$ What is the ending balance in Finished Goods Inventory using variable costing if 600 units are sold?

• A) $4000
• B) $5000
• C) $2000
• D) $3000

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Definitions:

Earned Income

Money derived from paid work, including salaries, wages, tips, bonuses, and other compensation for services rendered.

In-kind Benefits

Goods and services provided directly to individuals by governments or organizations instead of cash payments.

Welfare Programs

Governmental initiatives designed to assist the needy in society by providing financial aid, food, housing, and healthcare.

Specific Goods

Specific goods are items that are distinctly identified or unique, often characterized by specific attributes, brands, or quality that differentiate them from general goods.