McFarlane,Inc There Are No Beginning Inventories

question 99

Multiple Choice

McFarlane,Inc.reports the following information: $\begin{array}{|l|r|l|}\hline \text { Units produced } & 600 &\text { units } \\\hline \text { Units sold } & 410 &\text { units } \\\hline \text { Sales price } & \$ 130 &\text { per unit } \\\hline \text { Direct materials } & { \$25}&\text { per unit } \\\hline \text { Direct labor } & \$ 9 &\text { per unit } \\\hline \text { Variable manufacturing overhead } & { \$16}&\text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 18,300 &\text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 5 &\text { per unit } \\\hline \text { Fixed selling and administra } & \$ 12,900 &\text { per year } \\\hline\end{array}$ There are no beginning inventories.What is the ending balance in Finished Goods Inventory using variable costing?

• A)$9500
• B)$6460
• C)$10,450
• D)$15,295

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Definitions:

Glycolysis

Anaerobic breakdown of glucose that results in a gain of two ATP and the production of pyruvate; occurs in the cytoplasm of cells.

Electron Transport Chain

A sequence of electron carrier molecules that transfer electrons and release energy used to make ATP, found in the inner mitochondrial membrane.

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins into carbon dioxide.

Glycolysis

The metabolic pathway that converts glucose into pyruvate, generating energy in the form of ATP.