WebFlicks Is an Online DVD Company That Produces Its Own

question 60

Multiple Choice

WebFlicks is an online DVD company that produces its own DVD copies of first-run movies that it sells for $8.00 each.The following information is available (Assume the same unit costs in all years) : $\begin{array}{ll}\text { Variable costs: }\\\text { Product royalty fees } & \$ 3.30 \text { per DVD } \\\text { DVD production } & \$ 1.20 \text { per DVD } \\\text { Selling and admin costs } & \$ 0.80 \text { per DVD }\\\text { Fixed costs: }\\\text { Production }&\$ 128,000 \text { per month }\\\text { Selling and administration }&\$ 130,000 \text { per month }\\\end{array}$ During June, 160,000 DVDs were produced and 144,000 were sold.There were 17,000 DVDs in beginning inventory.How much is inventory at the end of the month under full costing?

• A)$72,000
• B)$148,500
• C)$174,900
• D)$84,800

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Definitions:

Sender

The person or entity who initiates a message or package to be delivered to a recipient.

Receiver

The individual or group who is the intended recipient of a message or information.

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The use of strong, energetic, and forceful language in written or spoken communication.