A Company Produces a Single Product

question 276

Multiple Choice

A company produces a single product. Variable production costs are $12.60 per unit and variable selling and administrative expenses are $3.60 per unit. Fixed manufacturing overhead totals $42,000 and fixed selling and administration expenses total $46,000. Assuming a beginning inventory of zero, production of 4,600 units and sales of 3,900 units, the dollar value of the ending inventory under variable costing would be:

• A) $8,820
• B) $15,120
• C) $11,340
• D) $6,300

---

Definitions:

Rapid Economic Growth

A period where a country's economy expands at a faster rate than its historical average, often leading to increased wealth and employment opportunities.

Foreign Investment

Investment by individuals or companies in assets or businesses located in another country.

Duty Drawbacks

Duty drawbacks are refunds of customs duties paid on imported materials that are later exported, either in the same or a modified form, encouraging international trade.

Foreign Corrupt Practices Act

A United States federal law that aims to prevent the bribery of foreign officials for business purposes and ensure accounting transparency.