Catherman Corporation Manufactures One Product

question 17

Multiple Choice

Catherman Corporation manufactures one product. It does not maintain any beginning or ending inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.
During the year, the company produced and sold 32,400 units at a price of $42.30 per unit. Its standard cost per unit produced is $36.90 and its selling and administrative expenses totaled $102,000. The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year:

-The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to:

• A) $1,128,750
• B) $1,262,370
• C) $1,195,560
• D) $1,303,710

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Definitions:

Thin Lava Flows

Layers of lava that spread out over large areas and cool to form relatively thin sheets of rock.

Lava Fountain

A volcanic phenomenon in which molten lava is forcefully ejected into the air from a vent or crack in the Earth's surface.

Pyroclastic Flow

A rapid flow of hot gases and volcanic debris that descends along a volcano's slopes when there's a violent eruption.

Lava Dome

A roughly circular mound-shaped protrusion resulting from the slow extrusion of viscous lava from a volcano.