Amoeba Manufacturing Company Provided the Following Information for the Year

question 17

Multiple Choice

Amoeba Manufacturing Company provided the following information for the year 2015: $$\begin{array} { | l | r | } \hline \text { Purchases-Raw Materials } & \$ 90,000 \\\hline \text { Plant Utilities \& Insurance } & 67,500 \\\hline \text { Indirect Materials } & 11,750 \\\hline \text { Indirect Labor } & 4,750 \\\hline \text { Direct Materials Used in Production } & 96,000 \\\hline \text { Direct Labor } & 117,500 \\\hline \text { Depreciation on Factory Plant \& Equipment } & 6,000 \\\hline\end{array}$$ The inventory account balances as of January 1^st 2015 are given below.
$$\begin{array} { | l | r | } \hline \text { Raw Materials Inventory } & \$ 42,000 \\\hline \text { Work-in-Process Inventory } & 12,000 \\\hline \text { Finished Goods Inventory } & 49,500 \\\hline\end{array}$$ What is the ending balance in the Raw Materials Inventory account?

• A) $54,000
• B) $6,000
• C) $111,000
• D) $24,250

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Definitions:

Acceptance

The act of agreeing that something is satisfactory or adequate, often referring to the acceptance of hypotheses or theories based on evidence.

Statistic Probability

The likelihood of an event occurring based on the analysis of a set of predefined numerical data.

Null Hypothesis

In statistical testing, it's the presumption that there is no effect or difference among groups or variables being studied.

Probability

A numerical value ranging from 0 to 1, representing the chance of an event's occurrence.