The Following Information Relates to the Defined Benefit Pension Plan

question 18

Multiple Choice

The following information relates to the defined benefit pension plan of the Summersville Company for the year ending December 31,2014:

The net amount of the gain or loss component to be included in pension cost for 2014 would be

• A)$8,500
• B)$32,500.
• C)$47,500.
• D)$77,500.

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Definitions:

Raw Materials Cost

The expense associated with obtaining the basic materials required for production before any processing or manufacturing is done.

Finished Goods Inventory

The inventory of products that have been manufactured and are ready to be sold to customers.

Production Needs

The specific requirements and quantities of materials, labor, and capacity required to manufacture products.

Sales

The total amount of a company's revenue generated from goods or services sold over a designated period.