Brady Ltd uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred: The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods.
The sales revenue for the year was
A) $210,000
B) $215,040
C) $260,000
D) $204,960

Question

Quizplus · Accepted Answer

The sales revenue is calculated by multiplying the number of units sold by the selling price per unit. Given the choices, $215,040 is the correct sales revenue for the year.

Brady Ltd Uses a Normal Absorption Costing System in Which