A Company Has the Following Information for Its First Month

question 91

Multiple Choice

A company has the following information for its first month of operations: $\begin{array}{lr}\text { Raw materials used } & \$ 25,000 \\\text { Sales } \$ 65 \text { per unit) } & \$ 91,000 \\\text { Direct labor } & \$ 42,000 \\\text { Variable factory overhead } & \$ 17,000 \\\text { Fixed factory overhead } & \text { unknown } \\\text { Variable selling and administrative } & \$ 3,000 \\\text { Fixed selling and administrative } & \$ 5,000 \\\text { Gross profit } & \$ 30,000 \\\text { Contribution margin } & \text { unknown }\\\\\text { Ending inventories: }\\\\\text { Raw materials } & \$ 7,000 \\\text { WIP } & \text { none } \\\text { Finished goods } & 1,200 \text { units }\end{array}$ _____ units were produced during the period.

• A)0
• B)1,200
• C)2,600
• D)3,600

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Definitions:

Retention

The ability to keep or hold information in memory over time.

Retrieval

The process of recalling information that has been previously learned or experienced from one's memory.

Recognition

The ability to identify a previously encountered stimulus.

Peg-word System

A mnemonic device that associates numbers with items that rhyme with or resemble the numbers to aid in memory.