Use the Following Information for the Month of June for Questions

question 40

Multiple Choice

Use the following information for the month of June for questions
XYZ Inc.uses the average cost formula in a perpetual inventory system.
(Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)

-XYZ Inc.has an ending inventory on June 30 of

• A)$1,370.00.
• B)$1,418.56.
• C)$1,429.90.
• D)$1,450.15.

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Definitions:

Total Cost

The aggregate expenditure related to the manufacturing of products or services, which includes both stable and changeable costs.

Variable Inputs

Inputs in production that change in quantity depending on the level of output, such as raw materials and labor.

Marginal Cost

The expense associated with manufacturing an extra unit of a product or service.

Average Fixed Cost

is calculated by dividing the total fixed costs of production by the quantity of output produced, showing the cost per unit of output.