Jimmy Industries Inc The Company Sold One-Half of the Units It Produced

question 65

Multiple Choice

Jimmy Industries Inc.reported the following information about the production and sale of its only product during the first month of operations:
$\begin{array}{ll}\text { Selling price per unit } & \$ 65,00 \\\text { Sales } & \$ 78,000 \\\text { Direct materials used } & \$ 25,000 \\\text { Direct labor } & \$ 42,000 \\\text { Variable factory overhead } & \$ 17,000 \\\text { Fixed factory overhead } & ? \\\text { Variable selling and administrative expenses } & \$ 3,000 \\\text { Fixed selling and administrative expenses } & \$ 5,000 \\\text { Gross profit } & \$ 30,000 \\\text { Production volume variance } & 0\end{array}$
The company sold one-half of the units it produced.The company uses absorption costing.Fixed factory overhead costs included in the ending inventory of finished goods are ________.

• A) 0
• B) $6,000
• C) $8,400
• D) $12,000

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