McFarlane, Inc There Are No Beginning Inventories

question 50

Multiple Choice

McFarlane, Inc. reports the following information: $$\begin{array} { | l | r | l | } \hline \text { Units produced } & 600 & \text { units } \\\hline \text { Units sold } & 410 & \text { units } \\\hline \text { Sales price } & \$ 130 & \text { per unit } \\\hline \text { Direct materials } & \$ 25 & \text { per unit } \\\hline \text { Direct labor } & \$ 9 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 16 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 18,300 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 5 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 12,900 & \text { per year } \\\hline\end{array}$$ 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:

Subject Matter Experts

Individuals who exhibit the highest level of expertise in specific domains or areas of knowledge, often consulted for their deep understanding.

Data Collecting

The process of gathering information from various sources to analyze patterns, make decisions, or reach conclusions in research or business operations.

Human Resource Decisions

Decisions within an organization that pertain to the recruitment, selection, retention, and management of personnel.

Strategy

Strategy refers to a plan of action designed to achieve a long-term or overall aim, often involving the deployment of resources to enhance competitive advantage.