PFA Corporation Uses a Throughput Costing System and Reported the Following

question 93

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 ending inventory was:

• A)$70
• B)$200
• C)$0
• D)$490

---

Definitions:

Binomial Proportions

The ratios that represent the outcomes of processes that follow binomial distribution, often involving two possible outcomes.

Population Mean

The average value of a population attribute, representing the central point of a data set for the entire population.

Random Sample

A subset of a statistical population in which each member has an equal chance of being chosen.

Confidence Interval

A range of values, derived from sample data, that is likely to include the true population parameter with a specified level of confidence.