During Its First Year of Operations,Carlos Manufacturing Corporation Incurred the Following

question 71

Multiple Choice

During its first year of operations,Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its only product: The company also incurred the following costs in selling 7,500 units of product during its first year: Assume that direct labor is a variable cost. Under variable costing,what is the total cost that would be assigned to Carlos' finished goods inventory at the end of the first year of operations?

• A)$15,000
• B)$42,125
• C)$44,000
• D)$14,000

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Definitions:

Uncertain Future Event

An uncertain future event is an event or occurrence that may or may not happen, impacting plans, decisions, and outcomes depending on its eventual realization or lack thereof.

Quasi-contract

A legal concept where a court enforces an obligation on parties as if a contract existed, to prevent unjust enrichment.

Materially Breached

A significant failure to meet one's contractual obligations, which permits the other party to the contract to either enforce the contract or be released from it.

Reasonable Value

Reasonable value refers to a fair or sensible amount or worth of goods, services, or property, often determined in a legal context.