Theele Corporation Has the Following Information for April, May, and June

question 87

Multiple Choice

Theele Corporation has the following information for April, May, and June:
Production costs per unit (based on 10,000 units) are as follows:
$\begin{array}{lrrr} & \text { April } & \underline{\text { May }} & \text { June } \\\text { Units produced } & 10,000 & 10,000 & 10,000 \\\text { Units sold } & 7,000 & 8,500 & 10,500\end{array}$ Theele Corporation had no beginning inventories for April, and all units were sold for $55 per unit. Costs are stable over the three months.
$\begin{array}{lr}\text { Direct materials } & \$ 13 \\\text { Direct labour } & 9 \\\text { Variable factory overhead } & 7 \\\text { Fixed factory overhead } & 5 \\\text { Variable selling and administrative expenses } & 10 \\\text { Fixed selling and administrative expenses } & 4\end{array}$
-Refer to the Figure.What is the June ending inventory for Theele Corporation when using the variable costing method?

• A)$15,000
• B)$116,000
• C)$120,000
• D)$260,000

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Definitions:

Thoughts And Feelings

Refer to internal cognitive and affective states that are subjective and can influence behavior and perception.

Physical Events

Occurrences in the natural world that involve matter and energy, observable through the senses or scientific instruments.

Classical Conditioning

An educational technique in which two stimuli are repeatedly associated; a reaction initially caused by the second stimulus is ultimately triggered by only the first stimulus.

Pavlov

Ivan Pavlov, a Russian physiologist known for his work in classical conditioning, demonstrating how stimuli can trigger conditioned responses in animals.