Westwood Company
Westwood Company Has the Following Information the Current

question 81

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 net income using the variable costing method?

• A) $480,000
• B) $600,000
• C) $1,200,000
• D) $2,328,000

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Definitions:

Goods

Tangible personal property, which includes physical items that can be seen, touched, and possessed.

Conflicting Interests

Situations where competing priorities or obligations cause a conflict for an individual or organization, potentially leading to ethical dilemmas.

Perfected

In legal terms, it refers to a state where an interest (such as a lien or security interest) is made legally enforceable and established in a manner that it has priority over the claims of others.

Collateral

Assets that are pledged as security for the repayment of a loan.