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

question 91

Multiple Choice

Swanson,Inc.has collected the following data.(There are no beginning inventories. ) $$\begin{array} { | l | r | r|} \hline \text { Units produced } &600& \text { units } \\\hline \text { Sales price } & \$ 120& \text { per unit } \\\hline \text { Direct materials } & \$ 20 &\text { per unit } \\\hline \text { Direct labor } & \$ 12 &\text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 6& \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 17,400& \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 5& \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 13,700& \text { per year } \\\hline\end{array}$$ What is the ending balance in Finished Goods Inventory using absorption costing if 550 units are sold? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )

• A)$1,450
• B)$1,900
• C)$4,742
• D)$3,350

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Definitions:

Personal Consumption

The value of goods and services consumed by individuals and households for their own use.

Corporate Income

Corporate income refers to the total revenue a company earns minus its expenses, taxes, and costs, showcasing the company's financial performance over a period.

Sole Proprietorships

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Sole Proprietorships

Business entities owned and operated by a single individual, with no legal distinction between the owner and the business.