A Company Has the Following Information for Its First Month

question 117

Multiple Choice

A company has the following information for its first month of operations: $\begin{array}{ll}\hline \text { Raw materials used } & \$ 25,000 \\\text { Sales (\$65 per unit) } & \$ 78,000 \\\text { Directlabor } & \$ 42,000\\\text { Variable factory overhead }&\$17,000\\\text { Fixed factory overhead unknown }\\\text { Variable sellingand administrative }&\$3,000\\\text { Fixed sellingand administrative }&\$5,000\\\text { Gross profit }&\$30,000\\\text { Contributionmargin }&\text { unknown }\\\end{array}$
Ending inventories:
Raw materials $\quad$$\$ 7,000$
WIP none
Finishedgoods $\quad$$\quad$$\quad$ 1,200units The ending inventory under variable costing is:

• A) $84,000
• B) $48,000
• C) $96,000
• D) $42,000

---

Definitions:

Ethical Challenges

Moral dilemmas and issues that arise in the practice of business and professional activities, requiring deliberation and decision-making.

Social Challenges

Issues that affect individuals or communities, related to inequality, health, education, and access to resources, requiring collective action for resolution.

Operations-Related Tasks

Activities and duties associated with managing and improving the processes that produce goods or deliver services in an organization.