The Following Data Pertain to One Month's Operations of Whitney

question 17

Multiple Choice

The following data pertain to one month's operations of Whitney, Inc.:
$\begin{array} { | l | r | } \hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 9,000 \\\hline \text { Units sold } &8,000 \\ \hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 10 \\\hline \text { Selling and administrative } & \$ 6 \\\hline \text { Fixed costs in total } & \\\hline \text { Manufacturing } & \$ 18,000 \\\hline \text { Selling and administrative } & \$ 27,000 \\\hline\end{array}$

-What was the carrying value on the balance sheet of the ending finished goods inventory under absorption costing?

• A) $10,000.
• B) $12,000.
• C) $16,000.
• D) $21,000.

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Definitions:

Capital Structure

The mixture of debt and equity financing a company uses to fund its operations and grow its business.

Firm's

Pertaining to a business or company, often used to describe activities, assets, or attributes specific to that entity.

Shareholders' Equity

The residual interest in the assets of a company after deducting all its liabilities, often referred to as stockholders’ equity.

Common Stock

Common stock represents ownership shares in a company, giving holders voting rights and a claim on dividends.