Bella Ltd Has Operated for 2 Years

question 83

Multiple Choice

Bella Ltd has operated for 2 years. During that time it produced 1,000 units in year 1 and 800 in year 2, while sales were 800 units in year 1 and 900 in year 2. Variable production costs were $8 per unit during both years. The company uses last-in, first-out (LIFO) for inventory costing. The absorption costing income statements for these 2 years were: Ending inventory for year 2 using variable costing would be

• A) $2,200
• B) $1,100
• C) $1,175
• D) $800

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Definitions:

Data

Facts or statistics collected together for reference or analysis.

Sum of Squared Scores

A statistical calculation used in various analyses, representing the sum of the squared differences between each observation and the mean of the data set.

Data

Facts and statistics collected together for analysis but not necessarily organized in a manner that gives them meaning.

Standard Deviation

A measurement tool for evaluating the dispersion or spread among a series of data.