Timkon Manufacturing Has Provided the Following Operating Results for Its

question 119

Multiple Choice

Timkon Manufacturing has provided the following operating results for its recent operations:
$\begin{array}{lr}\text { Beginning inventory of finished goods } & 4,500 \\\text { Units produced (no work in process) } & 10,000 \\\text { Units sold } & 12,500 \\\text { Units in ending inventory of finished goods } & 2,000\\\text { Sales price }&\$ 50 \text { per unit }\\\text { Variable manufacturing costs }&\$ 20 \text { per unit }\\\text { manufactured Variable selling expenses }&\$ 2 \text { per unit sold }\\\text { Variable administrative expenses } & \$ 1 \text { per unit sold Fixed manufacturing } \\\text { costs for the year } & \$ 100,000 \\\text { Fixed selling expenses for the year } & \$ 52,000 \\\text { Fixed administrative expenses for the year } & \$ 84,000\end{array}$
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Assuming beginning inventory cost per unit is not different than ending inventory cost per unit, the value of the ending inventory under direct costing is:

• A)$60,000
• B)$46,000
• C)$40,000
• D)$63,000

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Definitions:

Conductors

Materials that allow the flow of electrical current, commonly used in electrical wiring and electronics for the transmission of electricity.

Voltage Drop

A decrease in electrical potential along the path of a current through a circuit.

Ohm Resistor

An electrical component that opposes the flow of current, defined by its resistance value in ohms.

Voltage Drops

The reduction in electrical potential measured across a component or conductor when current is flowing, indicative of resistance or impedance.