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McFarlane,Inc There Are No Beginning Inventories

Question 206

Multiple Choice

McFarlane,Inc.reports the following information:  Units produced 590 units  Units sold 490 units  Sales price $120 per unit  Direct materials $26 per unit  Direct labor $9 per unit  Variable manufacturing overhead $14 per unit  Fixed manufacturing overhead $16,500 per year  Variable selling and administrative costs $6 per unit  Fixed selling and administrative costs $12,200 per year \begin{array} { | l | r | c | } \hline \text { Units produced } & 590 & \text { units } \\\hline \text { Units sold } & 490 & \text { units } \\\hline \text { Sales price } & \$ 120 & \text { per unit } \\\hline \text { Direct materials } & \$ 26 & \text { per unit } \\\hline \text { Direct labor } & \$ 9 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 14 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 16,500 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 6 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 12,200 & \text { per year } \\\hline\end{array} There are no beginning inventories.What is the ending balance in Finished Goods Inventory using variable costing?


A) $4900
B) $3500
C) $5500
D) $7697

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