Use This Information for Rusty Co

question 208

Multiple Choice

Use this information for Rusty Co. to answer the questions that follow.
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Rusty Co. sells two products, X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows:
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-What was Rusty Co.'s sales mix last year?

• A) 58% X, 42% Y
• B) 60% X, 40% Y
• C) 30% X, 70% Y
• D) 12.5% X, 87.5% Y

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Definitions:

Work in Process Inventory

The expenses associated with goods that are still in the manufacturing stage, encompassing wages, raw materials, and indirect costs.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials used in creating the good along with the direct labor costs used to produce the good.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period, indicating its profitability.

Indirect Labor

Labor costs associated with the support work of producing a product or providing a service, not directly involved in the active manufacturing or service delivery process.