During the Month of June,Reardon Company Incurred $17,000 of Direct

question 108

Multiple Choice

During the month of June,Reardon Company incurred $17,000 of direct labour,$8,500 of manufacturing overhead and purchased $15,000 of raw materials.Between the beginning and the end of the month,the raw materials inventory increased by $2,000,the finished goods inventory increased by $1,500,and the work in process inventory decreased by $3,000.The cost of goods manufactured would be:

• A) $38,500.
• B) $40,500.
• C) $41,500.
• D) $43,500.

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Definitions:

Price-Fixing Agreement

An illegal arrangement between businesses to set prices at a certain level, typically above market equilibrium, to maximize profits.

Secretly Increasing Sales

The strategy of covertly enhancing a company's sales numbers, possibly through non-transparent marketing tactics or undisclosed discounts.

Collusion

A non-competitive secret or illegal agreement between rivals that attempts to disrupt the market's equilibrium by influencing the market mechanism such as price or output of goods and services.

Economic Recession

A period of significant decline in total output, income, employment, and trade in an economy, usually lasting from six months to a year.