Cahalane Corporation has provided the following data for its two most recent years of operation: Selling price per unit$91 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$12Direct labor$5Variable manufacturing overhead$5Fixed manufacturing overhead per year$432,000Selling and administrative expenses: Variable selling and administrative expense per unit sold$4Fixed selling and administrative expense per year$78,000 Year 1Year 2Units in beginning inventory01,000Units produced during the year9,00012,000Units sold during the year8,00010,000Units in ending inventory1,0003,000 Which of the following statements is true for Year 2
A. The amount of fixed manufacturing overhead released from inventories is $60,000
B. The amount of fixed manufacturing overhead released from inventories is $592,000
C. The amount of fixed manufacturing overhead deferred in inventories is $592,000
D. The amount of fixed manufacturing overhead deferred in inventories is $60,000
Answer: D
You might also like to view...
The control independent billing authorization ensures that bills:
a. are accurate b. are for goods that were picked in the warehouse c. are for goods actually ordered by the customer d. have authorized prices
What is marketing analytics? Why has it become so central to gathering data about customers and performance?
What will be an ideal response?
In order to manage a company's liquidity, managers and other users of financial information must understand the difference between transactions that generate immediate cash and those that do not
Indicate whether the statement is true or false
Despite many years of research, the evidence on market efficiency described in this chapter appears to be inconclusive. Some argue that this is because researchers have been unable to link company fundamentals to stock prices precisely. Comment