Georgia, Inc

question 107

Multiple Choice

Georgia, Inc. has collected the following data on one of its products. The actual cost of the direct materials used is: Direct materials standard (4 lbs. @ $1/lb.) $ 4 per finished unit
Total direct materials cost variance-unfavorable $ 13,750 Actual direct materials used 150,000 lbs.
^{Actual finished units produced 30,000} units

• A) $106,250.
• B) $120,000.
• C) $150,000.
• D) $158,750.
• E) $133,750.

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Definitions:

Purchase-Money Security Interest

A legal claim granted to lenders over items purchased, serving as collateral for the loan used to purchase the goods.

Possession Of Collateral

Holding or control over property or assets pledged as security for a loan or obligation.

Private Sale

A transaction of goods or property conducted directly between individuals or parties without the involvement of a public auction or open market.

Public Sale

The process of selling goods or assets to the highest bidder in an open and public manner.