During Its First Year of Operations, Forrest Company Paid $47,290

question 93

Multiple Choice

During its first year of operations, Forrest Company paid $47,290 for direct materials and $50,700 in wages for production workers. Lease payments, utility costs, and depreciation on factory equipment totaled $14,300. General, selling, and administrative expenses were $20,700. The average cost to produce one unit was $5.70. How many units were produced during the period?

• A) 20,823
• B) 19,700
• C) 23,332
• D) None of these.

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Definitions:

Labor

The human effort, both physical and mental, used in the production of goods and services.

Positive Economics

Positive Economics is the branch of economics that deals with the description and explanation of economic phenomena, focusing on factual and cause-and-effect relationships.

Economic Variables

Quantitative measures that represent aspects of the economy or a company and can change over time, such as GDP, inflation rate, and unemployment rate.

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Individuals or groups responsible for making decisions that affect the economy, society, or governance.