The Following Information Pertains to Guillotine Corporation What Is the Value of the Ending Inventory Using the r

question 63

Multiple Choice

The following information pertains to Guillotine Corporation: $$\begin{array} { l r } \text { Beginning inventory } & 1,000 \text { units } \\\text { Ending inventory } & 6,000 \text { units } \\\text { Direct labor per unit } & \$ 40 \\\text { Direct materials per unit } & 20 \\\text { Variable overhead per unit } & 10 \\\text { Fixed overhead per unit } & 30 \\\text { Variable selling and admin. costs per unit } & 6 \\\text { Fixed selling and admin. costs per unit } & 14\end{array}$$ What is the value of the ending inventory using the absorption costing method?

• A)$240,000
• B)$360,000
• C)$420,000
• D)$600,000

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Definitions:

Bar Graph

A visual representation of data using rectangular bars of lengths proportional to the values they represent, which can be oriented horizontally or vertically.

Regression Toward

A statistical phenomenon where extreme cases tend to be less extreme on subsequent measurements.

Illusory Correlation

The belief in a connection between two factors where none actually exists.

Decline Effect

The phenomenon where the strength of a scientific finding or the size of observed effects tends to decrease over time with subsequent studies or experiments.