Sutherland, Inc There Are No Beginning Inventories

question 49

Multiple Choice

Sutherland, Inc. reports the following information: $$\begin{array} { | l | r | l | } \hline \text { Units produced } & 580 & \text { units } \\\hline \text { Units sold } & 470 & \text { units } \\\hline \text { Sales price } & \$ 200 & \text { per unit } \\\hline \text { Direct materials } & \$ 29 & \text { per unit } \\\hline \text { Direct labor } & \$ 8 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 13 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 16,600 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 6 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 14,000 & \text { per year } \\\hline\end{array}$$ There are no beginning inventories. What is the ending balance in Finished Goods Inventory using absorption costing? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

• A) $7218
• B) $3148
• C) $5500
• D) $8648

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Definitions:

Employee

An individual who works under a contract of employment, receiving compensation for providing services to an employer.

Third Party

An individual or group besides the two primarily involved in a situation or contract, often implicated in legal or financial transactions.

Authorized

Having official permission or approval to do something, especially in a legal or formal context.

Contract

A legally binding agreement between two or more parties that is enforceable by law.