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:

Intently

With strong focus or concentration on a particular task or activity.

Happy

A state of well-being and contentment characterized by positive emotions ranging from satisfaction to intense joy.

Help Others

The act of providing assistance, support, or aid to individuals other than oneself.

Satisfaction

The feeling of fulfillment or contentment that arises from achieving desired outcomes or experiences.