Woodhead Incorporated Manufactures One Product

question 438

Multiple Choice

Woodhead Incorporated manufactures one product. It does not maintain any beginning or ending inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. Its standard cost per unit produced is $37.45. During the year, the company produced and sold 24,400 units at a price of $47.40 per unit and its selling and administrative expenses totaled $92,000. The company does not have any variable manufacturing overhead costs. It recorded the following variances during the year: The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

• A) $913,780
• B) $1,190,385
• C) $947,605
• D) $879,955

---

Definitions:

Precautionary Principle

A strategy to cope with possible risks where scientific understanding is yet incomplete, suggesting action to avoid or diminish harm.

Scientific Research

The systematic investigation and study of materials, sources, etc., in order to establish facts and reach new conclusions.

Commercial Use

Activities undertaken for the purpose of generating profit, often related to the buying and selling of goods and services.

Toxicity

The degree to which a substance can cause harm to an organism.