Last Year, Fabre Company Produced 20,000 Units and Sold 18,000

question 58

Multiple Choice

Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for last year were as follows:
Fixed factory overhead is applied based on expected production. Last year, Fabre expected to produce 20,000 units.
-Refer to Figure 8-1. Assuming that beginning inventory was zero, what is the value of ending inventory under absorption costing?

• A) $5,480
• B) $4,500
• C) $10,900
• D) $12,600
• E) $5,750

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Definitions:

Fish

Aquatic, gill-bearing animals that lack limbs with digits, often moving through water by fin propulsion.

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia that typically move voluntarily and consume organic materials.

Trout

A common freshwater fish found in clear, cold waters, known for its importance in angling and aquaculture.

Categorical Syllogism

A form of argument consisting of three propositions: a major premise, a minor premise, and a conclusion, which logically deduct from the premises.