PFA Corporation Uses a Throughput Costing System and Reported the Following

question 124

Multiple Choice

PFA Corporation uses a throughput costing system and reported the following information for its first month of operations: Units produced 140
Units sold 120
Material cost per unit produced $3.50
Conversion cost per unit produced $6.50
Fixed period costs per unit produced $6.00
Variable period costs per unit produced $4.00
Selling price per unit $25.00
PFA's throughput cost of goods sold was:

• A)$420
• B)$490
• C)$1,200
• D)$1,400

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Definitions:

Atmosphere

The layer of gases surrounding a planet, held in place by gravity, essential for maintaining life by providing breathable air and protecting from harmful solar radiation.

Prebiotic Soup Hypothesis

A theory suggesting that life on earth began in a "soup" of organic molecules, possibly in the oceans, that eventually led to the formation of more complex molecules and early life forms.

Organic Molecules

Molecules that contain carbon and are found in living systems.

Fossil Stromatolites

Ancient, layered bio-chemical structures created by the trapping, binding, and calcification of sedimentary grains by microbial mats of microorganisms, especially cyanobacteria, indicative of early life on Earth.