A Company Has the Following Information for the Current Month

question 137

Multiple Choice

A company has the following information for the current month of operations: $\begin{array}{ll}\text { Raw materials used } & \$ 37,500 \\\text { Sales }(\$ 97.50 \text { p er unit) } & \$ 117,000 \\\text { Direct labor } & \$ 63,000 \\\text { Variable factory overhead } & \$ 25,500 \\\text { Fixed factory overhead } & \text { unknown }\\\text { Variable s elling and administrative } & \$ 4,500 \\\text { Fixed selling and adminis trative } & \$ 7,500 \\\text { Gross profit } & \$ 45,000 \\\text { Contribution margin } & \text { unknown }\end{array}$

$\begin{array}{lll}\text { Inventories: } & \text { Beginning } & \text { Ending } \\\text { Raw materials } & 0 & \$ 10500 \\\text { WIP } & 0 & \text { none } \\\text { Finished goods } & 0 & 1,200 \text { units }\end{array}$ The ending inventory under variable costing is:

• A) $126,000
• B) $144,000
• C) $63,000
• D) $72,000

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Definitions:

Latest Finish Time

Refers to the latest possible point in time that an activity or task can be completed without delaying the project.

Project Completion Time

The estimated or actual period it takes to finish a project from start to end.

Spreadsheet

A digital worksheet that organizes data in rows and columns which can be manipulated and used for calculation, analysis, and storage.

Two-Way Data Tables

A type of data table in Excel that allows users to view how changing two variables simultaneously will affect a single outcome.