Sutherland,Inc There Are No Beginning Inventories

question 191

Multiple Choice

Sutherland,Inc.reports the following information: $$\begin{array} { | l | r | c | } \hline \text { Units produced } & 640 & \text { units } \\\hline \text { Units sold } & 440 & \text { units } \\\hline \text { Sales price } & \$ 200 & \text { per unit } \\\hline \text { Direct materials } & \$ 29 & \text { per unit } \\\hline \text { Direct labor } & \$ 12 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 18 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 18,500 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 4 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 13,500 & \text { per year } \\\hline\end{array}$$ There are no beginning inventories.What is the ending balance in Finished Goods Inventory using absorption costing? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

• A) $13,981
• B) $5781
• C) $11,800
• D) $17,582

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Definitions:

Techniques

Methods or approaches used in a particular discipline or activity to achieve a specific result.

Expectations

The anticipations of consumers, firms, and others about future economic conditions.

Firms

Business entities or organizations engaged in commercial, industrial, or professional activities, aiming to produce and sell goods or services to consumers.

Law Of Supply

The principle that, other things equal, an increase in the price of a product will increase the quantity of it supplied, and conversely for a price decrease.