Use the Following Information to Answer the Question(s)below

question 25

Multiple Choice

Use the following information to answer the question(s) below..
Pelga Company routinely receives goods from its 80%-owned subsidiary,Swede Corporation.In 2011,Swede sold merchandise that cost $80,000 to Pelga for $100,000.Half of this merchandise remained in Pelga's December 31,2011 inventory.This inventory was sold in 2012.During 2012,Swede sold merchandise that cost $160,000 to Pelga for $200,000.$62,500 of the 2012 merchandise inventory remained in Pelga's December 31,2012 inventory.Selected income statement information for the two affiliates for the year 2012 was as follows:

-What amount of unrealized profit did Pelga Company have at the end of 2012?

• A)$10,000
• B)$12,500
• C)$50,000
• D)$62,500

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Definitions:

Finite Capacity Scheduling

A method for planning and controlling production where the limited availability of resources (machines, labor, etc.) is taken into account.

Instantaneous Changes

Rapid alterations in a system or process that occur in a nearly zero time frame, often used in physics to describe acceleration or in finance for stock price movements.

Rule-Based Scheduling

A method of organizing tasks or operations based on a set of predetermined rules to optimize performance or resource allocation.

Critical Ratio Sequencing

A prioritizing technique used in production scheduling where jobs are sequenced based on the ratio of the remaining time to due date to the remaining work.