Reference: 16_01
Refer to the Following Table of Cost Information

question 130

True/False

Reference: 16_01
Refer to the following table of cost information:
$\begin{array}{llr}&\text { Goods in } & \text { Goods in } & \\&\text { Process- } & \text { Process- } & \text { Finished } \\&\underline{\text { Pickling }} & \underline{\text { Canning }} &\underline{ \text { Goods }}\\ \text { Beginning inventory } &\$25,000&\$7,500&\$10,000\\ \text {Costs incurred: } &\\ \text { Direct materials } &16,000&3,000\\ \text { Direct labor } &4,000&2,100\\ \text {Overhead applied } &6,000&4,200\\ \text { Coststransferred out } &(29,000)&(35,000)\\ \text { Coststransferred in.} &&29,000&35,000\\ \text { Cost of goods sold } &\underline{\quad\quad}&\underline{\quad\quad}&\underline{(39,000)}\\ \text {Ending inventory } & \underline{\$22,000}& \underline{\$10,800}& \underline{\$6,000}\\\end{array}$

-The company uses the same predetermined overhead allocation rate (based on direct labor)for the Pickling and Canning Departments.

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Definitions:

Flexible Exchange Rates

A foreign exchange system where the value of currencies is determined by market forces without direct government intervention.

Libras

A constellation in the zodiac, symbolized by the scales, or in a financial context, might be mistaken for "libra," which refers to a unit of weight or a former currency.

Freely Floating Exchange Rates

Exchange rates that are determined by the supply and demand for currencies in the foreign exchange market without direct intervention by countries' governments.

Imports

Goods or services brought into a country from abroad for sale, contrasted with exports, which are sent out of a country.