Last Year, Harris Company Manufactured 17,000 Units and Sold 13,000

question 73

Multiple Choice

Last year, Harris Company manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:
$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 153,000 \\\hline \text { Direct labour } & 110,500 \\\hline \text { Variable manufacturing overhead } & 204,000 \\\hline \text { Fixed manufacturing overhead } & 255,000 \\\hline\end{array}$ Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labour is a variable cost.


-Under absorption costing,what was the carrying value on the balance sheet of the ending inventory for the year? Do not round intermediate calculations.

• A) $0.
• B) $170,000.
• C) $190,800.
• D) $230,800.

---

Definitions:

Customer Satisfaction

The measure of how products or services supplied by a company meet or surpass customer expectations.

New Passengers

Individuals who are utilizing a transportation service for the first time.

Bus Accidents

Incidents involving a collision or crash of a bus vehicle, leading to damage, injury, or loss of life.

Competitive Benchmarking

A process of comparing a company's products, services, or processes against those of its competitors to identify areas for improvement.