Reynolds Company Has Estimated Its Finished Goods Inventory-Handling Costs at $240,000.It

question 34

Multiple Choice

Reynolds Company has estimated its finished goods inventory-handling costs at $240,000.It has determined that an appropriate cost driver is the number of units completed.It estimates that 500,000 units will be completed this year.If 40,000 units are completed during the current month,what amount of inventory-handling cost should be recognized?

• A)$83,333
• B)$24,000
• C)$20,000
• D)$19,200

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