A Company Produces a Single Product

question 294

Multiple Choice

A company produces a single product. Variable production costs are $21 per unit and variable selling and administrative expenses are $4 per unit. Fixed manufacturing overhead totals $30,000 and fixed selling and administration expenses total $36,000. Assuming a beginning inventory of zero, production of 6,000 units and sales of 5,600 units, the dollar value of the ending inventory under variable costing would be:

• A) $10,000
• B) $8,400
• C) $12,000
• D) $14,400

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Definitions:

Preparatory Reaction

A phase in cellular respiration where pyruvate is converted into acetyl-CoA before entering the citric acid cycle.

Coenzyme A

A cofactor that plays a critical role in the synthesis and oxidation of fatty acids, as well as in the metabolism of carbohydrates and proteins.

Electron Transport Chain

A series of complexes that transfer electrons through a membrane within mitochondria to form a gradient used to produce ATP.

Citric Acid Cycle

A key metabolic pathway that integrates the energy production from carbohydrates, fats, and proteins in aerobic organisms.