Sheets Company Manufactures Chairs

question 63

Multiple Choice

Sheets Company manufactures chairs.If raw material used was $100,000 and Raw Material Inventory at the beginning and end of the period,respectively,was $27,000 and $31,000,what was amount of raw material was purchased?

• A)$ 96,000
• B)$104,000
• C)$158,000
• D)$131,000

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Definitions:

Support Price

A price level set by the government or a regulatory body to stabilize or support the market price of a commodity.

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with all else being equal.

Producer Surplus

The difference between what producers are willing to sell a good for and the higher price they actually receive.

Government Policy

Actions, regulations, or laws enacted by a government to influence economic, social, or environmental outcomes within its jurisdiction.