Steele Corporation Has the Following Information for January,February,and March

question 51

Multiple Choice

Steele Corporation has the following information for January,February,and March: $\begin{array}{lccc} & \text { January } & \text { February } &\text { March }\\ \text { Units produced } & 10,000 & 10,000&10,000 \\\text { Units sold } & 7,000 & 8,500 &10,500\\\end{array}$


$\begin{array}{lr}\text { Production costs per unit (based on 10,000 units) are as follows: }\\\text { Direct materials } & \$ 12 \\\text { Direct labour } & 8 \\\text { Variable factory overhead } & 6 \\\text { Fixed factory overhead } & 4 \\\text { Variable selling and admin. expenses } & 10\\\text { Fixed selling and admin. expenses }&4\end{array}$ There were no beginning inventories for January,and all units were sold for $50.Costs are stable over the three months.
What is the February ending inventory for Steele Corporation using the absorption costing method?

• A)$39,000
• B)$45,000
• C)$135,000
• D)$300,000

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Definitions:

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by persistent patterns of behavior that violate the rights of others and societal norms.

Reward

A beneficial and reinforcing stimulus or outcome, often used as a means to incentivize particular behaviors or decisions.

Punishment

A process or action that decreases the likelihood of a behavior occurring again by presenting an unpleasant response to the behavior.

Oppositional Defiant

A disorder marked by a persistent pattern of angry, defiant, and vindictive behavior towards authority figures.