Iagan,IncHas Collected the Following Data What Is the Ending Balance in Finished Goods Inventory Using

question 65

Multiple Choice

Iagan,Inc.has collected the following data.(There are no beginning inventories.) $\begin{array}{|l|r|l|}\hline \text { Units produced } & 600 &\text { units } \\\hline \text { Sales price } & \$ 120 &\text { per unit } \\\hline \text { Direct materials } & { \$30}& \text{ per unit } \\\hline \text { Direct labor } & { \$10}&\text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 7 &\text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 17,900& \text { per year } \\\hline \text { Variable selling and administrative costs } & { \$4 }& \text{per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 10,600 &\text {per year } \\\hline\end{array}$ What is the ending balance in Finished Goods Inventory using variable costing if 500 units are sold?

• A)$4000
• B)$4700
• C)$1700
• D)$3000

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Definitions:

Income Tax Expense

The amount of expense associated with income taxes due to federal, state, and/or local authorities for a given period.

Corporation Income Statement

A financial statement that outlines the revenues, expenses, and profits or losses of a corporation over a specific period of time.

Cash Dividend Liability

An obligation for a corporation to pay shareholders a declared dividend in cash.

Date of Record

The specific date set by a corporation upon which the company determines the shareholders eligible to receive a dividend or distribution.