Use the Following Information for Questions

question 27

Multiple Choice

Use the following information for questions.
Tang Inc.uses the retail inventory method.The following information is available for the current year:
-The approximate cost of the ending inventory by the conventional retail method is

• A)$153,720.
• B)$147,000.
• C)$143,850.
• D)$142,380.

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Definitions:

Spoilage

Materials or products that are damaged or unsuitable for sale or use and are written off as a loss.

Machine Breakdowns

Unplanned failures or malfunctions of machinery, often disrupting production processes and requiring repair or replacement.

Direct Materials Quantity Variance

The cost associated with the difference between the actual quantity and the standard quantity of direct materials used in producing a commodity multiplied by the standard direct materials price.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the product's cost.