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

question 21

Multiple Choice

Mackenzie, Inc. has collected the following data. (There are no beginning inventories.) $$\begin{array} { | l | r | l | } \hline \text { Units produced } & 700 & \text { units } \\\hline \text { Sales price } & \$ 130 & \text { per unit } \\\hline \text { Direct materials } & \$ 30 & \text { per unit } \\\hline \text { Direct labor } & \$ 12 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 10 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 17,400 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 5 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 19,700 & \text { per year } \\\hline\end{array}$$ What is the ending balance in Finished Goods Inventory using absorption costing if 400 units are sold? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

• A) $7457
• B) $15,600
• C) $33,001
• D) $23,058

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Definitions:

Facilities and Handling

Refers to the physical infrastructure and processes used for storing, managing, and transporting goods within a supply chain.

Retail Storage

The space and facilities used to hold goods in a retail environment before they are sold to consumers, impacting the availability and accessibility of products.

Supply Chain Performance

The measurement and assessment of the efficiency, effectiveness, and adaptability of supply chain activities and processes.

Transportation Cost

The expense incurred in moving goods or materials from one location to another.