From the Following Information,determine the Amount of Ending Inventory

question 58

Multiple Choice

From the following information,determine the amount of ending inventory.

• A) $23,000
• B) $32,000
• C) $33,000
• D) $22,000

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Definitions:

Unit Product Cost

The total cost (both fixed and variable) to produce a unit of product, often used in pricing and decision-making processes.

Absorption Costing

A product costing approach within accounting that captures the entirety of manufacturing costs—direct materials, direct labor, and overheads, whether they are variable or fixed.

Variable Costing

A costing approach that solely incorporates variable manufacturing expenses such as direct materials, direct labor, and variable manufacturing overhead into the costs per unit of product.

Income Statement

A financial statement that provides a summary of a company's revenues, expenses, and profits over a specific period, indicating financial performance.