Gulick Company Developed the Following Data for the Current Year

question 116

Multiple Choice

Gulick Company developed the following data for the current year: $\begin{array}{lr}\text { Beginning work in process inventory } & \$ 160,000 \\\text { Direct materials used } & 96,000 \\\text { Actual overhead } & 192,000 \\\text { Overhead applied } & 144,000 \\\text { Cost of goods manufactured } & 176,000 \\\text { Total manufacturing costs } & 480,000\end{array}$
- Gulick Company's direct labor cost for the year is

• A)$48,000.
• B)$240,000.
• C)$144,000.
• D)$192,000.

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Definitions:

Conversion Ratio

A key term in finance, specifically in convertible securities, representing the number of shares an investor can convert a bond into.

Par Value

The face value of a bond or stock as stated by the issuing company, which may be different from its market value.

Bond

A fixed income investment in which an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

American Options

Financial derivatives that give the holder the right to buy or sell an asset at a set price at any time before the expiration date.