Figure 25-6
Anderson Company Manufactures Two Different Products: a and B

question 5

Multiple Choice

Figure 25-6
Anderson Company manufactures two different products: A and B. The company has 100 kgs of raw materials and 300 direct labour-hours available for production.
The time requirements and contribution margins per unit are as follows: $\begin{array}{lcr}&A&B\\\text { Raw materials per unit (lbs.) } & 1 & 2 \\\text { Direct-labour hours per unit } & 4 & 2 \\\text { Contribution margin per unit } & E 4 & E 5\end{array}$
-Refer to Figure 25-6. What is the equation for the constraint on direct labour?

• A)£1A + £2B < 300
• B)£4A + £2B < 100
• C)£4A + £5B < 100
• D)£4A + £2B < 300

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Definitions:

General Journal

A primary accounting record where all types of financial transactions are initially recorded using double-entry bookkeeping before posting to specific accounts in the ledger.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.

Rendering Services

The act of providing professional services or duties to a client or customer.

Purchases Journal

A ledger used in accounting to record all purchases of goods and services on credit.