The Following Information Pertains to Shark Corporation -Refer to the Figure

question 52

Multiple Choice

The following information pertains to Shark Corporation:
$$\begin{array} { l r } \text { Beginning inventory } & 0 \text { units } \\\text { Ending inventory } & 6,000 \text { units } \\\text { Direct labour per unit } & \$ 2022 \\\text { Direct materials per unit } & 1618 \\\text { Variable overhead per unit } & 48 \\\text { Fixed overhead per unit } & 1012 \\\text { Variable selling costs per unit } & 1214 \\\text { Fixed selling costs per unit } & 1618\end{array}$$
-Refer to the Figure.What is the value of ending inventory when using the absorption-costing method?

• A)$200,000
• B)$348,000
• C)$368,000
• D)$390,000

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Definitions:

Direct Manufacturing Cost

Expenses directly tied to the production of specific goods, including materials and labor.

Relevant Range

The range of activity within which the assumptions about fixed costs and variable unit costs are valid for purposes of budgeting and decision-making.

Direct Costs

Expenses that can be directly traced to the production of specific goods or services, such as raw materials and labor.

Period Costs

Expenses that are not directly associated with the production process and are expensed in the period they are incurred.