Use the Following Information for the Next 4 Questions

question 101

Multiple Choice

Use the following information for the next 4 questions.
Baylor, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level, but sales were 1,200 units. The variable costing income statements for both years are shown below:
-The ending inventory for year 2 using absorption costing would be

• A) $51,000
• B) $34,000
• C) $22,000
• D) $17,000

---

Definitions:

Predictability

The degree to which future events or outcomes can be foreseen based on current or past information.

Continuous Process

Describes an operation or procedure that operates without interruption, typically in a manufacturing or production context.

Sequence Of Stages

A series of steps or phases that occur in a particular order as part of a process or development.

Learning And Experience

The process through which new skills, knowledge, behaviors, and attitudes are acquired, often influenced by past interactions and activities.