Truman Company Reported the Following Information About the Production and Sales

question 110

Multiple Choice

Truman Company reported the following information about the production and sales of its only product during its first month of operations: $$\begin{array} { l r } \text { Sales ( } \$ 225 \text { per unit) } & \$ 315,000 \\\text { Direct materials used } & \$ 160,000 \\\text { Direct labor } & \$ 100,000 \\\text { Variable factory overhead } & \$ 60,000 \\\text { Fixed factory overhead } & \$ 80,000 \\\text { Variable selling and administrative expenses } & \$ 20,000 \\\text { Fixed selling and administrative expenses } & \$ 30,000 \\\text { Endinginventories: } & \\\quad \text { Direct materials } & - 0 - \\\text { WIP } & - 0 - \\\text { Finished goods } & 600 \text { units }\end{array}$$ The ending inventory under absorption costing is:

• A) $96,000
• B) $120,000
• C) $78,000
• D) $135,000

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Definitions:

Reagents

Chemicals or substances infused into a system to trigger a chemical reaction or to verify the occurrence of a reaction.

Transformation

A process by which one thing changes into another, often applied in the context of mathematical functions, biological metamorphosis, or data manipulation.

Benzophenone

An organic compound with the formula (C6H5)2CO, often used as a photoinitiator or to perfume soaps.

Alkene

A hydrocarbon that contains at least one carbon-carbon double bond, characterized by the general formula CnH2n and playing a vital role in organic synthesis.