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:

Rotation

The act or process of moving or causing something to move in a circle around an axis or center.

Axis

A central line around which other things rotate or are symmetrically arranged; in anatomy, it refers to the second cervical vertebra.

Extension

An increase in the angle between bones at a joint or the straightening of a limb.

Straightening Movement

refers to the motion aimed at making something linear or rectifying its alignment.