Caruso Inc

question 62

Multiple Choice

Caruso Inc., which produces a single product, has provided the following data for its most recent month of operations:
There were no beginning or ending inventories.
-What is the total period cost for the month under the absorption costing?

• A) $93,100
• B) $133,100
• C) $40,000
• D) $73,500

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Definitions:

Warranty of Title

A guarantee in a sales contract that the seller has the legal right to transfer ownership and that there are no undisclosed encumbrances against the property or goods.

Implied Warranty

An unwritten guarantee that a product will meet a minimum level of quality and functionality.

Code

A systematic collection of laws, regulations, or rules that govern a specific area of legal practice.

Express Warranty

A clearly stated promise from a seller regarding the condition, quality, or performance of the goods being sold.