The Following Data Pertains to Lam Co $\text { Additional information for the month of April: }$

question 69

Multiple Choice

The following data pertains to Lam Co.'s manufacturing operations: $\begin{array}{lrr}\text { Inventories } &{4 / 1} &{4 / 30} \\\text { Direct Materials } & \$ 18,000 & \$ 15,000 \\\text { Work in Process } & 9,000 & 6,000 \\\text { Finished Goods } & 27,000 & 36,000\end{array}$
$\text { Additional information for the month of April: }$
$\begin{array}{lr}\text { Direct materials purchased }&\$32,000\\\text { Direct labor } & 30,000 \\\text { Direct labor rate per hour } & 10.00 \\\text { Factor overhead incurred } & 40,000\end{array}$
$\text { Overhead is applied at } \$ 12 \text { per direct labor hour. }$ For the month of April, conversion cost incurred was:

• A)$75,000.
• B)$66,000.
• C)$70,000.
• D)$39,000.

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Definitions:

Porter's Five Forces

A framework for analyzing a company's competitive environment, including threats from new entrants, bargaining power of suppliers and customers, threats from substitute products or services, and competitive rivalry.

Bargaining Power

The ability of a party to exert influence or control over the terms and conditions of negotiations due to its strengths or advantages.

Substitutes

Alternatives or replacements for someone or something, typically used in the context of materials, products, or personnel.

BCG Matrix

A strategic planning tool that classifies business units or products into four categories based on market growth and market share.