Hatfield Company, Which Has Only One Product, Has Provided the Following

question 111

Multiple Choice

Hatfield Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array} { | l | r | } \hline \text { Selling price } & \$ 123 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 6,400 \\\hline \text { Units in ending inventory } & 300 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 45 \\\hline \text { Direct labour } & \$ 30 \\\hline \text { Variable manufacturing overhead } & \$ 1 \\\hline \text { Variable selling and administrative } & \$ 8 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 140,800\\ \hline \text { Fixed selling and administrative } & \$ 91,500 \\\hline\end{array}$

-What was the unit product cost for the month under variable costing?

• A) $76.
• B) $84.
• C) $98.
• D) $106.

Understand the concept of cash-basis and accrual-basis accounting.

Appreciate the importance and methods of depreciation and its impact on financial statements.

Recognize the significance of revenue recognition and its potential for fraud.

Understand the principles behind the time period assumption.

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Definitions:

Distribution Company

A company that is responsible for managing the distribution of films to various outlets, including theaters, streaming platforms, and home video.

United Artists

A film and television production company founded by several leading Hollywood actors and filmmakers in 1919 to control their own interests.

Crosscutting

An editing technique used in filmmaking to establish action occurring at the same time in two different locations by cutting back and forth between them.

Birth Of A Nation

A 1915 American silent film directed by D.W. Griffith; controversial for its portrayal of African Americans and its glorification of the Ku Klux Klan.