Ben Runs a Cookie Factory

question 55

Multiple Choice

Ben runs a cookie factory.His cookies are made with sugar, peanut oil, and soybean oil.The number of boxes of cookies that he produces is f (su, po, so) = min{su, po + 2so}, where su is the number of bags of sugar, po the number of canisters of peanut oil, and so the number of canisters of soybean oil that he uses.The price of a bag of sugar is $12.The price of a canister of peanut oil is $6.The price of a canister of soybean oil is $19.If Ben makes 254 boxes of cookies in the cheapest way possible, how many canisters of soybean oil will he use?

• A)169.33
• B)127
• C)0
• D)84.67
• E)42.33

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Definitions:

Work in Process

Work in Process refers to the value of goods that are in the process of being manufactured but are not yet completed.

Total Manufacturing Costs

The sum of all costs directly involved in the production of goods, including raw materials, direct labor, and overhead.

Product Costs

Costs that are directly linked to the creation or acquisition of goods and services sold by a company.

Inventoriable Costs

Costs that are initially recorded as inventory on the balance sheet and expensed as cost of goods sold when the product is sold.