Use the Information Below to Answer the Following Question(s)

question 138

Multiple Choice

Use the information below to answer the following question(s) .Berry's Boxes manufactures boxes.It expects to sell 20,000 boxes in 2018.The company had enough beginning inventory of direct materials to produce 24,000 units.Beginning inventory of finished units totalled 2,000 with a target ending inventory of 2,500 units.The boxes sell for $3.00 and the company keeps no work-in-process inventory.Direct materials costs for each box total $1.00 while direct labour is $0.50.Factory overhead is $0.20 per box.
-What will be Berry's Boxes cost of goods sold in 2018?

• A)$42,000
• B)$24,000
• C)$38,000
• D)$30,000
• E)$34,000

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Definitions:

Net Domestic Product

The total value of all goods and services produced within a country in a specific period, minus depreciation.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting a decrease in its value over time.

Consumption

The use of goods and services by households, which is a primary component of GDP and a key indicator of the economic health of a society.

Gross Domestic Product

The total value of all goods and services produced within a country's borders during a specific time period, used as a broad indicator of economic health.