Sutherland,Inc There Are No Beginning Inventories

question 171

Multiple Choice

Sutherland,Inc.reports the following information: $$\begin{array} { | l | r | c | } \hline \text { Units produced } & 640 & \text { units } \\\hline \text { Units sold } & 440 & \text { units } \\\hline \text { Sales price } & \$ 200 & \text { per unit } \\\hline \text { Direct materials } & \$ 29 & \text { per unit } \\\hline \text { Direct labor } & \$ 12 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 18 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 18,500 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 4 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 13,500 & \text { per year } \\\hline\end{array}$$ There are no beginning inventories.What is the ending balance in Finished Goods Inventory using absorption costing? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

• A) $13,981
• B) $5781
• C) $11,800
• D) $17,582

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Definitions:

Customer Satisfaction

A state that is achieved when companies meet the needs and expectations customers have for their goods or services.

Long-Term Sales

Sales strategies focused on achieving sustained revenue growth over an extended period rather than immediate gains.

Needs

States of felt deprivation. Consumers feel that deprivation when they lack something useful or desirable like food, clothing, shelter, transportation, or safety.

Ethical Behavior

Acting in ways consistent with societal standards of right and good conduct, both in personal and professional contexts.