PFA Corporation Uses a Throughput Costing System and Reported the Following

question 11

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
Total period costs reported on PFA's throughput costing income statement were:

• A)$1,400
• B)$1,200
• C)$2,310
• D)$1,980

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Definitions:

Investment Expenditures

The outlays made by firms, government, or individuals to purchase goods and services that can create future benefits.

Durable Expenditures

Expenses on goods that have a useful life of more than three years, such as appliances, machinery, and equipment.

Money Supply

The total amount of monetary assets available in an economy at a specific time.

Interest Rates

The cost of borrowing money or the return on investment for savings and loans, usually expressed as a percentage.