A Company Reports the Following Information for Its First Year

question 124

Multiple Choice

A company reports the following information for its first year of operations:
$$\begin{array} { l l } \text { Units produced this year } & ? \text { units } \\\text { Units sold this year } & 1,500 \mathrm { units } \\\text { Direct materials } & \$ 9 \text { per unit } \\\text { Direct labor } & \$ 5 \text { per unit } \\\text { Variable overhead } & \$ 7 \text { per unit } \\\text { Fixed overhead } & \$ 24,000 \mathrm { in } \text { total }\end{array}$$
If the company's cost per unit of finished goods using absorption costing is $27,how many units were produced?

• A) 4,000 units.
• B) 3,600 units.
• C) 1,846 units.
• D) 2,667 units.
• E) 2,000 units.

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Definitions:

Calcaneal Tendon

Also known as the Achilles tendon, it connects the calf muscles to the heel bone, facilitating walking by helping to raise the heel off the ground.

Popliteal Fossa

The shallow depression located at the back of the knee joint, bordered by muscles and bone structures.

Plantar Flex

The movement of the foot that increases the angle between the foot and the leg, as in standing on tiptoe.

Multinucleated

Describes cells that have more than one nucleus, often found in certain muscle fibers and some types of bone cells.