Last Year, Harris Company Manufactured 17,000 Units and Sold 13,000

question 28

Multiple Choice

Last year, Harris Company manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:

Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labour is a variable cost.
-Under absorption costing,what was the carrying value on the balance sheet of the ending inventory for the year?

• A) $0.
• B) $170,000.
• C) $190,800.
• D) $230,800.

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Definitions:

External Perspective

The viewpoint of an individual or entity outside an organization, analyzing its operations, culture, and performance from an outsiders' perspective.

Supervising People

The act of overseeing and managing a group of people, ensuring they're working towards common goals efficiently and productively.

Management

The study of overseeing activities and supervising.

Overseeing Activities

Involves the monitoring, directing, and managing of tasks and operations to ensure they align with planned objectives and standards.