Steele Corporation Has the Following Information for January, February, and March

question 7

Multiple Choice

Steele Corporation has the following information for January, February, and March: Production costs per unit (based on 10,000 units) are as follows:
There were no beginning inventories for January, and all units were sold for $50.Costs are stable over the three months.

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What is the January ending inventory for Steele Corporation using the variable costing method?

• A) $260,000
• B) $78,000
• C) $108,000
• D) $90,000

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Definitions:

Cash Dividends

Dividends paid to shareholders by a corporation, ordinarily from its profit earnings.

Net Cash

The amount of cash that is available after all debts and obligations have been settled, reflecting a company's liquidity.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments, as part of a company's financial operations.

Cash Dividend

A distribution of a company's earnings to shareholders, decided by the board of directors, and paid in the form of cash.