At the End of Last Year,Lee Company Had 30,000 Units

question 108

Multiple Choice

At the end of last year,Lee Company had 30,000 units in its ending inventory.Every year,Lee Company's variable production costs are $10 per unit,and its fixed manufacturing overhead costs are $5 per unit.The company's operating income for the year was $12,000 higher under variable costing than under absorption costing.Given these facts,what must have been the number of units of product in inventory at the beginning of the year?

• A) 27,600 units.
• B) 28,800 units.
• C) 32,400 units.
• D) 42,000 units.

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Definitions:

Deindividuation

Deindividuation is a psychological state characterized by lowered self-awareness and decreased social identity, often leading to disinhibited and impulsive behavior, typically within group settings.

Self-Restraint

The ability to control one’s impulses, emotions, or desires, especially in difficult situations.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, essential for personal development.

Deindividuation

Deindividuation is a psychological state where individuals lose their sense of self-awareness and personal responsibility in groups, often leading to uncharacteristic behavior.