Georgia, Inc A) $133,750

question 71

Multiple Choice

Georgia, Inc. has collected the following data on one of its products. The actual cost of the direct materials used is: $$\begin{array} { l l c } \text { Direct materials standard (4 lbs. @ \$1/16.) } & \$ 4 \text { per fiinshed unit } \\\text { Total direct materials cost variarne — unfavorable } & \$ 13,750 \\\text { Actual direct materials used } & 150,000 \text { lbs. } \\\text { Actual finished units produced } & 30,000 \text { units }\end{array}$$

• A) $133,750.
• B) $150,000.
• C) $106,250.
• D) $158,750.
• E) $120,000.

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Definitions:

Indefinite Business Life

A term indicating that a company or asset is expected to operate or remain useful without a foreseeable limit or end date.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders. It can own assets, incur liabilities, and is subject to taxation.

International Financial Reporting Standards

A set of globally accepted accounting principles and standards that guide the preparation of financial statements.

Preferred Accounting Practices

Established accounting methods and procedures that are considered acceptable because they reflect the complexities of business transactions, ensuring accuracy and consistency.