Richardson Company The Following Information Is Available for Richardson Company for Its

question 107

Multiple Choice

Richardson Company
The following information is available for Richardson Company for its first year of operations:

• A)$120,000
• B)$64,500
• C)$27,000
• D)$24,000

Sales in units	5,000
Production in units	8,000
Manufacturing costs:
Direct labor	$3 per unit
Direct material	$5 per unit
Variable overhead	$1 per unit
Fixed overhead	$100,000
Net income (absorption method)	$30,000
Sales price per unit	$40

Refer to Richardson Company.If Richardson Company were using variable costing,what would it show as the value of ending inventory?

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Definitions:

Diuretics

Medications or substances that promote the excretion of urine, used to manage fluid balance.

Stress Incontinence

A condition characterized by the involuntary leakage of urine in response to physical activities that increase abdominal pressure, such as coughing, sneezing, or exercising.

Distension

The condition of being stretched, inflated, or larger than normal, often referring to the bloating of the abdomen.

Catheter

A flexible tube inserted into the body for removing fluids or introducing medication directly into specific areas, such as the bladder.