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:

Classical Conditioning

The procedure of acquiring skills by associating a stimulus occurring in one's environment with a naturally arising stimulus, prompting a learned reaction.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the occurrence of desired behaviors.

Insight Therapies

Psychological treatments that emphasize understanding the motives and mechanisms of the mind to achieve emotional and behavioral awareness and change.

Spontaneous Remission

The surprising recovery or healing from an illness or condition without the aid of medical treatment or intervention.