Richards Company The Following Information Has Been Taken from the Cost Records

question 86

Multiple Choice

Richards Company
The following information has been taken from the cost records of Richards Company for the past year:
Raw material used in production                                                $326
Total manufacturing costs charged to production during            686
the year (includes direct material, direct labor, and
overhead equal to 60% of direct labor cost)
Cost of goods available for sale                                                  826
Selling and Administrative expenses                                           25

• A)$135.
• B)$216.
• C)$225.
• D)$360.

Inventories	Begining	Ending
Raw material	75	$85
Work in process	80	30
Finished goods	90	110

Refer to Richards Company.Direct labor cost charged to production during the year was

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Definitions:

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Foreign Exchange Gain

A profit arising from fluctuations in the value of foreign currencies relative to one's home currency.

Exchange Rates

The pace at which one form of currency can be swapped for another, affecting international commerce and investments.

Invoice Price

The original price of goods or services listed on an invoice before any discounts, allowances, or additional charges are applied.