Brislin Gifts Makes Ceramic Mugs and Has the Following Amounts

question 105

Multiple Choice

Brislin Gifts makes ceramic mugs and has the following amounts during 2017 (Assume the same unit costs in all years) : $\begin{array}{lr}\text { Selling price } & \$ 9.00 \text { per mug } \\\text { Variable production cost } & \$ 2.50 \text { per mug } \\\text { Variable selling cost } & \$ 1.10 \text { per mug } \\\text { Fixed production cost } & \$ 100,000 \text { per year } \\\text { Fixed selling and administrative cost } & \$ 60,000 \text { per year }\end{array}$
$\text { Production and sales in units for the first three months of } 2017 \text { are as follows: }$

$\begin{array}{lll}\text { Year }&\text { Production }&\text { Sales }\\\hline\text { January } & 50,000 & 44,000 \\\text { February } & 40,000 & 45,000 \\\text { March } & 50,000 & 45,000\end{array}$ Inventory at January 1, 2017 consisted of 1,000 mugs.How much is the inventory cost per unit under variable costing during March?

• A)$4.50
• B)$3.60
• C)$2.50
• D)$5.60

---

Definitions:

Natural Selection

The process by which biological traits become either more or less common in a population due to the effect on the survival and reproduction of organisms.

Evolutionary Process

The natural development and adaptation of organisms over time through mechanisms like natural selection and genetic drift.

Common Ancestors

Refers to an ancestor that two or more descendants or species have in common from their family tree or evolutionary path.

Harmonious Ecosystem

An ecological state wherein different species and elements of an environment interact in a balanced and beneficial manner, supporting sustainability.