Gordon Company Produces a Single Product That Sells for $10

question 124

Multiple Choice

Gordon Company produces a single product that sells for $10 per unit. Last year, there were no beginning inventories, 100,000 units were produced, and 80,000 units were sold. The company has the following cost structure:


-Under absorption costing,what was the carrying value on the balance sheet of the ending finished goods inventory?

• A) $80,000.
• B) $104,000.
• C) $110,000.
• D) $200,000.

Understand the basic concepts and components of manufacturing cycle efficiency (MCE).

Comprehend the use and significance of residual income and return on investment (ROI) in evaluating investment centers.

Recognize the factors that affect ROI and how changes in sales, expenses, and assets influence it.

Appreciate the importance of non-value-added time in process efficiency and how it affects manufacturing time.

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Definitions:

Fertile Offspring

Progeny that are capable of reproducing, indicating successful genetic exchange and viability.

Sympatric Speciation

Origin of new species in populations that overlap geographically.

Reproductive Isolation

A set of mechanisms that prevent different species from mating or ensure that any offspring produced are sterile.

Geographic Isolation

A mechanism of evolutionary separation where populations of a species are physically separated by geographic barriers leading to species divergence.