The Following Information Was Available from the Inventory Records of Queen

question 44

Multiple Choice

The following information was available from the inventory records of Queen Company for July: What should be the inventory reported on Queen's July 31 statement of financial position using the average-cost inventory method (round per unit amounts to two decimal places) ?

• A) £54,000.
• B) £58,800.
• C) £59,220.
• D) £63,000.

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Definitions:

Contribution Margin

The amount of revenue remaining after deducting variable costs, contributing towards covering fixed costs and generating profit.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Total Manufacturing Costs

The aggregate of all costs involved in the process of producing a product, including direct materials, direct labor, and manufacturing overhead.

Business Unit Reporting

The process of preparing and presenting financial and operational reports specific to distinct divisions or segments of a company.