McFarlane,Inc There Are No Beginning Inventories

question 206

Multiple Choice

McFarlane,Inc.reports the following information: $$\begin{array} { | l | r | c | } \hline \text { Units produced } & 590 & \text { units } \\\hline \text { Units sold } & 490 & \text { units } \\\hline \text { Sales price } & \$ 120 & \text { per unit } \\\hline \text { Direct materials } & \$ 26 & \text { per unit } \\\hline \text { Direct labor } & \$ 9 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 14 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 16,500 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 6 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 12,200 & \text { per year } \\\hline\end{array}$$ There are no beginning inventories.What is the ending balance in Finished Goods Inventory using variable costing?

• A) $4900
• B) $3500
• C) $5500
• D) $7697

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Definitions:

Business Combination

The process of merging two or more companies into one entity, often to expand market share or integrate complementary assets.

Corporate Constituency

The various groups and individuals that a corporation interacts with and has obligations toward, including shareholders, employees, customers, and the community.

Stakeholder Laws

Regulations aimed at protecting the interests of all parties affected by a company's operations, not just its shareholders.

Staggered Terms

An arrangement where members of a governing body are elected at different times, so not all positions are up for election simultaneously.