As a Graphic Artist,Nate Has Just Finished Producing a New

question 51

Multiple Choice

As a graphic artist,Nate has just finished producing a new calendar.Nathan's calendar cost him $1.00 for the shiny paper,$2.00 for the six color production,and $.25 for the plastic wire that holds it together at the top.The labor in developing the design was 4 hours of work @ $50/hour,and labor is being added to the rest of the fixed costs of $400.00.At a price of $12.00 per calendar,how many calendars will Nathan need to produce and sell in order to break even cover all his costs,but not make a profit) ?

• A)690 calendars
• B)25 calendars
• C)40 calendars
• D)69 calendars

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Definitions:

T-Account

A visual representation of a ledger account that helps in understanding the effects of transactions on each account.

Raw Materials

The basic, unprocessed materials required in the manufacture of goods, often transformed through the production process.

Job-Order Costing

A costing method used to allocate costs to specific jobs or orders, tracking the expenses associated with each job individually.

Raw Materials Inventory

The stock of unprocessed materials waiting to be used in the manufacturing process.