The Following Data Pertain to One Month's Operations of Whitney

question 17

Multiple Choice

The following data pertain to one month's operations of Whitney, Inc.:
$\begin{array} { | l | r | } \hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 9,000 \\\hline \text { Units sold } &8,000 \\ \hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 10 \\\hline \text { Selling and administrative } & \$ 6 \\\hline \text { Fixed costs in total } & \\\hline \text { Manufacturing } & \$ 18,000 \\\hline \text { Selling and administrative } & \$ 27,000 \\\hline\end{array}$

-What was the carrying value on the balance sheet of the ending finished goods inventory under absorption costing?

• A) $10,000.
• B) $12,000.
• C) $16,000.
• D) $21,000.

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Definitions:

Unsecured

Refers to loans or debts that are issued and supported only by the borrower's creditworthiness, rather than by any type of collateral.

Secured Bonds

Bonds backed by specific assets as collateral to ensure repayment in case of issuer default.

Specific Assets

Assets identified and designated for a particular purpose or project, often distinguished from general or unspecified assets.

Bond Indenture

A legal contract between a bond issuer and bondholders, detailing the terms of the bond such as the interest rate, maturity date, and obligations of both parties.