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

question 61

Multiple Choice

Shark Corporation
The following information pertains to Shark Corporation: $$\begin{array} { l l } \text { Beginning inventory } & 0 \text { units } \\\text { Ending Finished Goods Inventory } & 6,000 \text { units } \\\text { Direct labour per unit } & \$ 22 \\\text { Direct materials per unit } & 18 \\\text { Variable manufacturing overhead per unit } & 6 \\\text { Fixed manufacturing overhead per unit } & 12 \\\text { Variable selling costs per unit } & 14 \\\text { Fixed selling costs per unit } & 16\end{array}$$
-Refer to Shark Corporation. What is the value of ending Finished Goods Inventory using the absorption costing method?

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

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Definitions:

Opportunity Cost

The cost of choosing one option over another, typically expressed as the value of the forgone alternative.

Output

The quantity of goods or services produced within a given timeframe.

Thinking At The Margin

The concept involves making decisions based on the additional benefit or cost of the next unit of production or consumption.

Air Travel

The act of moving from one place to another through the atmosphere, typically using airplanes or other aircraft.