A Company Produces a Single Product

question 294

Multiple Choice

A company produces a single product. Variable production costs are $21 per unit and variable selling and administrative expenses are $4 per unit. Fixed manufacturing overhead totals $30,000 and fixed selling and administration expenses total $36,000. Assuming a beginning inventory of zero, production of 6,000 units and sales of 5,600 units, the dollar value of the ending inventory under variable costing would be:

• A) $10,000
• B) $8,400
• C) $12,000
• D) $14,400

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Definitions:

Capital Goods

Physical assets such as buildings, machinery, and equipment used by businesses to produce goods and services.

Competitive Economy

An economic system in which businesses and individuals freely compete for consumers' money with minimal government intervention, leading to innovation and efficient market outcomes.

Homogeneous

Describes a substance or mixture that has a uniform composition and properties throughout.

Attractive Jobs

Employment positions deemed desirable due to factors like high pay, job security, career growth opportunities, and positive work-life balance.