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

question 19

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:

Funeral Cost

Funeral Cost pertains to all expenses incurred for the burial or cremation and the associated ceremonies and services following a death.

Federal Estate Tax

A tax imposed by the federal government on the transfer of the taxable estate of a deceased person, whether it passes via will, according to state law, or in other ways.

Charitable Remainder Trust

A tax-exempt trust arrangement designed to reduce the taxable income of individuals by first donating assets to a charity and then receiving a portion of the income generated by these assets for a certain period.

Charitable Lead Trust

A trust designed to provide financial support to one or more charitable organizations for a specific period, with the remaining assets eventually passing to non-charitable beneficiaries.