Information from the Records of the Cain Corporation for August

question 148

Multiple Choice

Information from the records of the Cain Corporation for August was as follows:
$\begin{array}{llr} \text {Sales } &\$1,230,000\\ \text { Selling and administrative expenses } &210,000\\ \text { Direct materials used } &264,000\\ \text { Direct labour } &300,000\\ \text {Factory overhead* } &405,000\\\end{array}$
*variable overhead is $205,000,fixed overhead is $200,000
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Inventories }$
$\begin{array}{lrr}& \underline{\text {August 1}}& \underline{\text {August 31}}\\\text { Direct materials } & \$ 36,000 & \$ 42,000 \\\text { Work in process } & 75,000 & 84,000 \\\text { Finished goods } & 69,000 & 57,000\end{array}$

-Refer to the figure.What is the conversion cost?

• A)$564,000
• B)$705,000
• C)$960,000
• D)$1,179,000

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Definitions:

Slavery

A system in which individuals are owned by others, deprived of personal freedom, and compelled to perform labor or services.

Frederick Douglass

An African American social reformer, abolitionist, orator, writer, and statesman in the 19th century, who escaped from slavery.

John Brown

An American abolitionist leader known for his role in the Bleeding Kansas conflict and his raid on Harpers Ferry, aiming to initiate a slave rebellion.

American Identity

The collective understanding of what it means to be American, characterized by shared values, traditions, and beliefs that define the national character of the United States.