For Moving Purposes, the Hendersons Bought 25 Cardboard Boxes for $117.50

question 15

Multiple Choice

For moving purposes, the Hendersons bought 25 cardboard boxes for $117.50. There were two kinds of boxes; the large ones cost $6.50 per box and the small ones were $4 per box. How many boxes of each kind did they buy?

• A) 12 large boxes and 13 small boxes
• B) 7 large boxes and 18 small boxes
• C) 18 large boxes and 7 small boxes

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Definitions:

Raw Materials Inventory

Stocks of the basic materials and components that are used in production but have not yet been processed or used in the manufacturing process.

Direct Labour

Work specifically conducted by employees directly involved in the manufacturing process of a product.

Manufacturing Overhead

All manufacturing costs excluding direct labor and direct materials, such as utilities and rent for production facilities.

Cost of Goods Manufactured

This refers to the total production cost incurred by a company to manufacture products in a specific period, including materials, labor, and overhead costs.