Swanson,Inc

question 203

Multiple Choice

Swanson,Inc.has collected the following data.(There are no beginning inventories. )

What is the ending balance in Finished Goods Inventory using absorption costing if 400 units are sold? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )

• A)$7,329
• B)$17,400
• C)$31,929
• D)$24,729

Understand the impact of purchasing, returning, and paying for merchandise on financial statements.

Comprehend the recording of transactions under the perpetual inventory system.

Identify the effects of errors in recording transactions on net income and total assets or liabilities.

Grasp the process of taking discounts on purchases and their effect on financial accounts.

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Definitions:

Finished Goods Inventory

The inventory of finished goods that are prepared for sale but remain unsold.

Cost of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Manufacturing Overhead Costs

Indirect costs related to manufacturing that cannot be directly attributed to specific units produced, such as maintenance and utility expenses.

Finished Goods Inventory

Finished goods inventory consists of items that have completed the manufacturing process and are ready to be sold to customers, representing a final stage in product inventory.