West Co'S Manufacturing Costs Are as Follows What Amount Should Be Considered Product Costs for External Reporting

question 99

Multiple Choice

West Co.'s manufacturing costs are as follows:
$\begin{array}{|l|r|}\hline \text { Direct materials and direct labour } & \$ 700,000 \\\hline \text { Other variable manufacturing costs } & 100,000 \\\hline \text { Depreciation of factory building and manufacturing equipment } & 80,000 \\\hline \text { Other fixed manufacturing overhead } & 18,000 \\\hline\end{array}$
What amount should be considered product costs for external reporting purposes if the company uses absorption costing?

• A) $700,000.
• B) $800,000.
• C) $880,000.
• D) $898,000.

Understand and calculate conversion ratios and their impact on shareholder value.

Calculate new share quantities upon conversion of preferred stock to common stock.

Understand the concept of dividend payments and their calculation based on stock type and declared rates.

Calculate the change in investment value from conversions or stock price changes.

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