PFA Ltd Uses a Throughput Costing System and Reported the Following

PFA Ltd uses a throughput costing system and reported the following information for its first month of operations: Units produced…………………………………..140
Units sold………………………………………..120
Material cost per unit produced……………….$3.50
Conversion cost per unit produced……………$6.50
Fixed period costs per unit produced………….$6.00
Variable period costs per unit produced………$4.00
Selling price per unit…………………………$25.00
PFA's throughput contribution was

A) $3,000
B) $3,500
C) $2,580
D) $1,800

Correct Answer:

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