CIMA Fundamentals of management accounting BA2 Question # 100 Topic 11 Discussion

CIMA Fundamentals of management accounting BA2 Question # 100 Topic 11 Discussion

BA2 Exam Topic 11 Question 100 Discussion:
Question #: 100
Topic #: 11

The following data are available for a company that produces and sells a single product.

The company’s opening finished goods inventory was 2,500 units.

The fixed overhead absorption rate is $8.00 per unit.

The profit calculated using marginal costing is $16,000.

The profit calculated using absorption costing and valuing its inventory at standard cost is $22,400.

The company’s closing finished goods inventory is:


A.

3,300 units


B.

1,700 units


C.

3,900 units


D.

8,900 units


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