The Following Data (In Thousands of Dollars) Have Been Taken

question 48

Multiple Choice

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the year just ended.
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 910 \\\hline \text { Raw materials inventory, beginning } & \$ 80 \\\hline \text { Raw materials inventory, ending } & \$ 20 \\\hline \text { Purchases of raw materials } & \$ 100 \\\hline \text { Direct labour } & \$ 130 \\\hline \text { Manufacturing overhead } & \$ 200 \\\hline \text { Administrative expenses } & \$ 160 \\\hline \text { Selling expenses } & \$ 140 \\\hline \text { Work-in-process inventory, beginning } & \$ 40 \\\hline \text { Work-in-process inventory, ending } & \$ 10 \\\hline \text { Finished goods inventory, beginning } & \$ 130 \\\hline \text { Finished goods inventory, ending } & \$ 150 \\\hline\end{array}$



-What was the cost of the raw materials used in production (in thousands of dollars) during the year?

• A) $180.
• B) $40.
• C) $120.
• D) $160.

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Definitions:

Average Daily Float

The average amount of uncollected funds represented by checks in the process of clearing.

Collection Delay

The time lag between when a sale is made or service rendered and when the payment is actually received.

Cash Balance

The amount of cash a company has on hand at any given time, which includes currency, coins, and balances in checking and savings accounts.

Market Rate of Return

The average return that investors expect to earn from a particular investment, based on historical or anticipated performance.