Last Year,Stephen Company Had 20,000 Units in Its Ending Inventory

question 69

Multiple Choice

Last year,Stephen Company had 20,000 units in its ending inventory.During the year,Stephen Company's variable production costs were $12 per unit.The fixed manufacturing overhead cost was $8 per unit in the beginning inventory.The company's operating income for the year was $9,600 higher under variable costing than it was under absorption costing.Given these facts,what must have been the number of units of product in the beginning inventory last year?

• A) 18,800 units.
• B) 19,200 units.
• C) 19,520 units.
• D) 21,200 units.

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Definitions:

Approximate Normal

Describes data or distributions that are nearly, but not perfectly, normally distributed, exhibiting characteristics close to that of a bell-shaped curve.

Mean

The sum of values in a data set divided by the number of values, representing the central point of the data set.

Cyclical

Describes phenomena that occur in predictable patterns or cycles, often used in economic contexts to describe fluctuations in the business cycle.

Wavelike Pattern

A pattern characterized by oscillations or undulations reminiscent of the movement of waves, typically seen in contexts like physics, economics, and nature.