Westwood Company
Westwood Company Has the Following Information the Current

question 54

Multiple Choice

Westwood Company
Westwood Company has the following information the current year: $$\begin{array} { l l } \text { Selling sales price } & \$ 300 \text { per unit } \\\text { Variable production costs } & \$ 80 \text { per unit produced } \\\text { Variable selling and administrative expenses } &\$ 32 \text { per unit sold } \\\text { Fixed production costs } & \$ 400,000 \\\text { Fixed selling and administrative expenses } & \$ 280,000 \\\text { Units produced } & 20,000 \text { units } \\\text { Units sold } & 16,000 \text { units }\end{array}$$ The company had no beginning inventories
-Refer to Westwood Company. What is the cost of ending Finished Goods Inventory using the variable costing method?

• A) $80,000
• B) $180,000
• C) $320,000
• D) $380,000

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Definitions:

Traditional Approach

A common method used in accounting or finance that relies on historical or established practices for processing and analyzing data.

Control Costs

The process of monitoring and managing expenses to ensure they do not exceed the planned budget or resources.

Fixed Overhead Budget

A financial plan that outlines the expected fixed costs that are not dependent on the level of goods or services produced by the organization.

Unexpected Increase

A sudden and unforeseen rise in metrics such as costs, sales, or price levels that was not anticipated as part of the regular business planning process.