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

question 47

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 May ending inventory for Theele Corporation when using the absorption costing method?

• A)$39,000
• B)$45,000
• C)$148,500
• D)$300,000

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Definitions:

Textile Effect

Textile Effect refers to the artistic technique or visual appearance wherein works of art, particularly paintings, mimic the texture or patterns of textiles, creating a tapestry-like quality.

Bold Colors

The use of intense, vivid, or striking colors in art, design, or fashion to create impact or convey strong emotions.

Vincent Van Gogh

A post-impressionist painter from the Netherlands known for his vivid colors, emotional honesty, and bold brushwork, with works like "Starry Night" and "Sunflowers."

Pointillism

A system of painting devised by the 19th-century French painter Georges Seurat. The artist separates color into its component parts and then applies the component colors to the canvas in tiny dots (points). The image becomes comprehensible only from a distance, when the viewer’s eyes optically blend the pigment dots. Sometimes referred to as divisionism.