US Systems Inc

question 165

Essay

U.S. Systems Inc., had the following activities during 2018:

Required:
a.What is the cost of direct materials used during 2018?
b.What is cost of goods manufactured for 2018?
c.What is cost of goods sold for 2018?
d.What amount of prime costs was added to production during 2018?
e.What amount of conversion costs was added to production during 2018?

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Definitions:

Price Level

A metric that represents the typical prices of goods and services in an economy at a given time.

Current Year CPI

Current Year CPI refers to the Consumer Price Index for the current year, indicating the level of inflation or deflation in the economy by measuring changes in the price level of a set of consumer goods and services.

Base Year

A specific year against which economic growth, prices, or other data are measured and compared in terms of indices or other statistical measurements.

Basket Of Goods

A collection of products or services considered representative for purposes of measuring inflation or cost of living.