If the Total Warehousing Cost for the Year Amounts to $350,000,and

question 179

Multiple Choice

If the total warehousing cost for the year amounts to $350,000,and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials,how much of the cost would be charged as a product cost?

• A)$70,000
• B)$140,000
• C)$210,000
• D)$350,000

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Beet Juice

A liquid extracted from beets, known for its nutritional benefits and potential use in food coloring and health drinks.

Refined Sugar

Sugar that has been processed to remove impurities and is typically found in a granulated form suitable for consumption.

Financial Advantage

The benefit gained in financial terms from a particular action or situation, often measured in terms of profit, savings, or net worth.