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

question 104

Multiple Choice

Swanson,Inc.has collected the following data.(There are no beginning inventories.) $$\begin{array} { | l | r | } \hline \text { Units produced } & { 700 \text { units } } \\\hline \text { Sales price } & \$ 130 \text { per unit } \\\hline \text { Direct materials } & \$ 40 \text { per unit } \\\hline \text { Direct labor } & \$ 11 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 7 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 17,100 \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 4 \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 14,000 \text { per year } \\\hline\end{array}$$ What is the ending balance in Finished Goods Inventory using absorption costing if 400 units are sold? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

• A) $7,329
• B) $17,400
• C) $31,929
• D) $24,729

---

Definitions:

Word Deafness

A rare auditory disorder where an individual is unable to understand spoken words despite having normal hearing abilities.

Auditory Aphasia

A neurological condition characterized by the inability to understand or process spoken language despite normal hearing capacity.

Spoken Language

A form of human communication that is based on the use of vocal sounds for the expression of thoughts and feelings.

Occipital Lobe

The region of the cerebral cortex located at the back of the brain, responsible for processing visual information.