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

question 285

Multiple Choice

Mackenzie,Inc.has collected the following data.(There are no beginning inventories.) $$\begin{array} { | l | r | c | } \hline \text { Units produced } & 600 & \text { units } \\\hline \text { Sales price } & \$ 120 & \text { per unit } \\\hline \text { Direct materials } & \$ 20 & \text { per unit } \\\hline \text { Direct labor } & \$ 12 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 6 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 17,400 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 5 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 13,700 & \text { per year } \\\hline\end{array}$$ 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) $1450
• B) $1900
• C) $4742
• D) $3350

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Definitions:

Scarcity

Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, necessitating prioritization and choice.

Sufficient Resources

The availability of adequate resources (including time, money, and manpower) to achieve a particular goal or complete a project.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.

Scarcity

A situation where limited resources are insufficient to satisfy all wants and needs.