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

question 87

Multiple Choice

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


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

• A)$15,000
• B)$104,000
• C)$120,000
• D)$260,000

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Definitions:

Directors

People selected by the corporation's shareholders to supervise the administration and strategize decisions for the company.

Shareholder's Meeting

A gathering of a company's shareholders where important issues are discussed, and decisions are made about the company's affairs.

Proxy

Authorization to represent a corporate shareholder to serve as his or her agent and vote his or her shares in a certain manner.

Greater-Than-Majority Vote

A voting requirement in decision-making processes that necessitates more than 50% of the votes to pass a motion or make a decision.