Stephen Company Produces a Single Product

question 90

Multiple Choice

Stephen Company produces a single product.Last year,the company had 20,000 units in its ending inventory.During the year,Stephen's variable production costs were $12 per unit.The fixed manufacturing overhead cost was $8 per unit in the beginning inventory.The company's net operating income for the year was $9,600 higher under variable costing than it was under absorption costing.The company uses a last-in-first-out (LIFO) inventory flow assumption.Given these facts,the number of units of product in the beginning inventory last year must have been:

• A)21,200
• B)19,200
• C)18,800
• D)19,520

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Definitions:

Casual Listening

A relaxed form of listening where the listener is not actively analyzing or critically responding to the audio input.

Grapevine Communication

Informal and unofficial channels of communication within an organization, spreading information through word-of-mouth.

Johari Window

A model for understanding self-awareness, personal development, group dynamics, and interpersonal relationships.

Visual Kinesic Communication

Non-verbal communication expressed through body movements, facial expressions, gestures, and posture.