Darke Corporation Makes One Product and Has Provided the Following

question 101

Multiple Choice

Darke Corporation makes one product and has provided the following information:Budgeted unit sales for October, November, and December are 7,600, 9,000, and 10,100 units respectively.The ending finished goods inventory equals 40% of the following month's sales.Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $1.00 per pound.The direct labor wage rate is $19.00 per hour. Each unit of finished goods requires 3.0 direct labor-hours.Manufacturing overhead is entirely variable and is $11.00 per direct labor-hour.The estimated finished goods inventory balance at the end of November is closest to:

• A) $294,920
• B) $383,800
• C) $133,320
• D) $250,480

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Definitions:

Maximum Price

A price ceiling set by the government or another regulatory body, beyond which prices cannot legally rise for essential goods or services.

Economic Impact

The effect of an event, policy, or market change on the economy, which can be measured in terms of changes in employment, GDP, or other economic indicators.

Apartments

Living spaces within a building or complex, typically rented, that provide residential accommodation.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.