Fisher,Inc

question 20

Multiple Choice

Fisher,Inc.recently lost a portion of its records in an office fire.The following information was salvaged from the accounting records.
Direct labor cost incurred during the period amounted to 1.5 times the factory overhead.The CFO of Fisher,Inc.has asked you to recalculate the following accounts and to report to him by the end of the day.
What is the amount of direct materials purchased?

• A)$24,000.
• B)$28,000.
• C)$31,000.
• D)$36,000. $24,000 = $31,000 - ($12,000 - $5,000)= $24,000

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Definitions:

Rent Control

Government regulations that limit the amount landlords can charge for renting out a property and may also restrict the reasons for evicting tenants.

Economy Works

The systematic way in which economic activities are organized and conducted in a society to produce goods and services.

Scientist

A professional engaged in a systematic activity to acquire knowledge, often employing the scientific method in various fields.

Stock Prices

The cost of purchasing a share of ownership in a company, which can fluctuate based on market conditions.