PFA Ltd Uses a Throughput Costing System and Reported the Following

question 26

Multiple Choice

PFA Ltd uses a throughput costing system and reported the following information for its first month of operations: Units produced…………………………………..140
Units sold………………………………………..120
Material cost per unit produced……………….$3.50
Conversion cost per unit produced……………$6.50
Fixed period costs per unit produced………….$6.00
Variable period costs per unit produced………$4.00
Selling price per unit…………………………$25.00
PFA's throughput contribution was

• A) $3,000
• B) $3,500
• C) $2,580
• D) $1,800

---

Definitions:

Leased Department

A section within a retail store that is rented to an outside party.

Omni-Channel Retailing

A multi-channel approach to sales that seeks to provide customers with a seamless shopping experience whether they're shopping online from a mobile device, a laptop, or in a brick-and-mortar store.

Direct Selling

Retailing in which an independent representative of a company conducts retail and sales-related activities away from a fixed retail location, most often at consumers’ homes or place of business. Also known as direct retailing.

Specialty Food

Food that is of high quality and often unique in terms of origin, ingredients, or preparation, targeting a specific consumer market.