Bevco Company Has Provided the Following Information from Its Accounting

question 195

Multiple Choice

Bevco Company has provided the following information from its accounting records for the current year: $$\begin{array} { l r l r } \text { Cash } & \$ 55,000 & \text { Accounts receivable } & \$ 45,000 \\\text { Inventory } & 65,000 & \text { Land } & 75,000 \\\text { Accounts payable } & 50,000 & \text { Notes payable (due 2020) } & 150,000 \\\text { Retained earnings } & ? & \text { Capital stock } & 20,000\end{array}$$
-Read the information for Bevco Corporation.What are Bevco' current assets?

• A) $ 100,000
• B) $ 165,000
• C) $ 210,000
• D) $ 240,000

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Definitions:

Applied Overhead Rate

A predetermined rate used to allocate manufacturing overhead costs to individual units of output.

Manufacturing Overhead Application Rate

The rate used to allocate manufacturing overhead costs to individual units of production, based on a chosen activity base.

Machine Cost

The total expenditure associated with acquiring and preparing a machine for its intended use.

Work-in-Process Inventory

Goods partially worked on but not yet completed; an inventory account that tracks the value of materials and labor input into products that are in the production process.