Mackenzie,Inc What Is the Ending Balance in Finished Goods Inventory Using

question 145

Multiple Choice

Mackenzie,Inc.has collected the following data.(There are no beginning inventories.) $\begin{array}{|l|r|l|}\hline \text { Units produced } & 700& \text { units } \\\hline \text { Sales price } & { \$130}&\text { per unit } \\\hline \text { Direct materials } & \$ 30 &\text { per unit } \\\hline \text { Direct labor } & { \$12}& \text{ per unit } \\\hline \text { Variable manufacturing overhead } & { \$10}&\text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 17,400 &\text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 5& \text { per unit } \\\hline \text { Fixed selling and administrative cost } & \$19,700& \text { per year } \\\hline\end{array}$ What is the ending balance in Finished Goods Inventory using absorption costing if 400 units are sold? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

• A)$7457
• B)$15,600
• C)$33,001
• D)$23,058

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Definitions:

Risk Profile

An individual's or entity's willingness to take risks, as well as the potential financial losses they can afford.

Price Fluctuations

Price fluctuations refer to variations in the selling price of goods and services over a period, influenced by market conditions.

Borrowing Costs

Expenses incurred by an entity for borrowing funds, including interest, arrangement fees, and other related costs.

Future

A standardized financial contract obligating the buyer to purchase, and the seller to sell, a specific asset at a predetermined future date and price.