[The Following Information Applies to the Questions Displayed Below

question 98

Multiple Choice

[The following information applies to the questions displayed below.]
Castle TV,Inc.purchased 1,000 monitors on January 5 at a per-unit cost of $185,and another 1,000 units on January 31 at a per-unit cost of $230.In the period from February 1 through year-end,the company sold 1,800 units of this product.At year-end,200 units remained in inventory.
-Assume that Castle TV,Inc.uses the FIFO flow assumption.The cost of the 200 units in inventory at year-end is:

• A)$41,500.
• B)$46,000.
• C)$37,000.
• D)$83,000.

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Definitions:

Operations

The day-to-day activities involved in running a business that are necessary for producing goods and services and generating revenue.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a basis for assigning labor costs to products.

Predetermined Overhead Rate

An estimated overhead rate used to apply manufacturing overhead costs to products, calculated before the costs are actually incurred.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as utilities, rent for the manufacturing facility, and salaries for management, distinct from direct labor and direct materials.