Barrett,Inc The Beginning Finished Goods Inventory Costs Were $3300 Under Absorption

question 102

Multiple Choice

Barrett,Inc.reports the following information for the year ended December 31: $$\begin{array} { | l | r | l | } \hline \text { Beginning Finished Goods Inventory } & 60 & \text { units } \\\hline \text { Units produced } & 400 & \text { units } \\\hline \text { Units sold } & 460 & \text { units } \\\hline \text { Sales price } & \$ 160 & \text { per unit } \\\hline \text { Direct materials } & \$ 30 & \text { per unit } \\\hline \text { Direct labor } & \$ 12 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 15 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 15,900 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 10 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 12,500 & \text { per year } \\\hline\end{array}$$ The beginning Finished Goods Inventory costs were $3300 under absorption costing and $3420 under variable costing.
What is the operating income using variable costing?

• A)$42,780
• B)$45,200
• C)$14,380
• D)$4780

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Definitions:

Invincibility Fable

An adolescent’s egocentric conviction that he or she cannot be overcome or even harmed by anything that might defeat a normal mortal, such as unprotected sex, drug abuse, or high-speed driving.

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An individual in the stage of development between childhood and adulthood, often marked by significant physical, psychological, and social changes.

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The process by which a person's ability to think, reason, and problem solve grows and changes over time.