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NEW QUESTION 43
Grayson Inc. experienced the following costs per unit this year for one of the direct materials involved in producing its main product
3.1 pounds @ $4 20 per pound = $13.02 per finished unit
For the next year. Grayson expects to produce 7.400 finished units. The price per pound of the direct material is expected to rise 10%. To combat this increase. Grayson has adapted its manufacturing process to reduce the amount of the direct material needed per finished unit by 5% What is the direct materials budget for the next year?

• A. $101,165
• B. $100,684
• C. $91,531
• D. $105,983

Answer: B

NEW QUESTION 44
GorCo anticipates 10% sales growth each month for the next three months, and plans to sell 120.000 units of finished goods In the first month. The company plans production so that ending inventory is equal to 5% of the next month's budgeted sales On GorCo's production budget for the second month the number of finished goods units to be produced would be

• A. 131,340.
• B. 132,660.
• C. 132,000.
• D. 132,600.

Answer: B

NEW QUESTION 45
A corporation had foreign currency translation gains from converting the financial statements of its foreign operations into U.S dollars .How will these gains be reported on the corporation's financial statements?

• A. As a current asset on the balance sheet
• B. As part of comprehensive income on the income statement
• C. As part of net income on the income statement
• D. As a net increase in cash in the operating activities section of the statement of cash flows

Answer: B

NEW QUESTION 46
in times of declining prices using the Last-in First-Out (LIFO) cost flow assumption rather than the First-in, First-Out (FIFO) assumption will yield

• A. higher assets and lower Income
• B. higher assets and higher income
• C. lower assets and lower income
• D. lower assets and higher income

Answer: B

NEW QUESTION 47
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