Octagonal Company Has the Following Information for 2018 There Were No Beginning Inventories

question 23

Multiple Choice

Octagonal Company has the following information for 2018: $\begin{array}{lr}\text { Selling price } & \$ 150 \text { per unit } \\\text { Variable production costs } & \$ 40 \text { per unit produced } \\\text { Variable selling and admin. expenses } & \$ 16 \text { per unit sold } \\\text { Fixed production costs } & \$ 200,000 \\\text { Fixed selling and admin. expenses } & \$ 140,000 \\\text { Units produced } & 10,000 \text { units } \\\text { Units sold } & 8,000 \text { units }\end{array}$ There were no beginning inventories.
What is the ending inventory for Eastwood using the absorption costing method?

• A)$300,000
• B)$180,000
• C)$120,000
• D)$80,000

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Definitions:

Quantity Minimized

Refers to the outcome of an optimization problem where the goal is to find the smallest possible value of a certain quantity.

Multiple Regression Model

A statistical technique that models the relationship between a dependent variable and multiple independent variables by fitting a linear equation to observed data.

Regression Slope Coefficients

The estimates that measure the relationship between the dependent variable and each independent variable in regression analysis.

Y-intercept

The point where a line, curve, or surface intersects the y-axis of a coordinate system.