Solve the Problem. -A Beverage Wholesaler Wants to Create a New Punch. He

question 144

Multiple Choice

Solve the problem.
-A beverage wholesaler wants to create a new punch. He will mix fruit juice worth $5 a gallon and rum worth $10 a gallon. He wants to obtain 125 gallons of punch worth $7 a gallon. How much of each beverage should he
Use?

• A)100 gal of juice; 25 gal of rum
• B)112.5 gal of juice; 12.5 gal of rum
• C)75 gal of juice; 50 gal of rum
• D)87.5 gal of juice; 37.5 gal of rum

---

Definitions:

Work in Process

Inventory that is in the production process and has not yet been completed or transferred to the finished goods inventory.

Raw Materials Purchased

The total cost of all raw materials that a company buys during a period for use in production.

Total Manufacturing Costs

The sum of all expenses directly involved in the production of goods, including direct materials, direct labor, and manufacturing overhead.

Direct Labor

Labor costs for employees who are directly involved in the production of goods or services.