DeAnne Company Produces a Single Product

question 141

Multiple Choice

DeAnne Company produces a single product. The company's variable costing income statement for August appears below: The company produced 35,000 units in August and the beginning inventory consisted of 8,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.
-The value of the company's inventory on August 31 under the absorption costing method is:

• A)$27,000
• B)$42,000
• C)$36,000
• D)$47,000

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Definitions:

Capital Contributions

Value or assets provided to a company by its owners or shareholders to support the business and its operations.

Income Distribution

The process of dividing and allocating income earned by a business to its stakeholders or investment products.

Personal Use

Personal use refers to the use of an asset or service for individual rather than business or commercial purposes.

Interest Attributed

The portion of interest income or expense assigned to a specific entity, often used in the context of loans or investments.