During Its First Year of Operations, Holt Manufacturing Company Incurred

question 93

Multiple Choice

During its first year of operations, Holt Manufacturing Company incurred the following costs to produce 200,000 units of its only product: Holt also incurred the following costs in the sale of 180,000 units of product during its first year: Assume that direct labor is a variable cost.
-What would be the cost per unit of Holt's finished goods inventory at the end of the first year of operations under the absorption costing method?

• A) $2.34
• B) $2.74
• C) $4.50
• D) $6.30

---

Definitions:

Forestry

The science and craft of creating, managing, using, and conserving forests and associated resources for human and environmental benefits.

Selective Cutting

A forestry practice where only certain trees are cut down, allowing for a mix of tree ages and types to remain, promoting a healthier forest.

Uneven-aged Stand

A forestry term referring to a forest, woodland, or stand of trees that has trees of mixed ages within it, which can enhance biodiversity and resilience.

Mature Trees

Fully grown trees that have reached their full size and are often considered crucial for providing habitat and ecosystem services.