During its first year of operations, Brown Company incurred the following product costs: Direct materials used in
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Question:
During its first year of operations, Brown Company incurred the following product costs:
Direct materials used in production $200,000;
Direct labor $175,000; and
Manufacturing overhead $145,500.
The Brown Company's ending Work in Process Inventory amounted to $35,000 at the end of the year. What is the company's cost of finished goods manufactured for the year?
a. $375,000
b. $200,000
c. $485,500
d. $520,500
2. Within the relevant range, fixed costs:
a. Remain steady when sales volume changes.
b. Rise as sales volume rises.
c. Fall as sales volume falls.
d. Rise as sales volume falls.
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
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