Becker Corporation
Information from the Records of Becker Corporation for December

question 46

Multiple Choice

Becker Corporation
Information from the records of Becker Corporation for December is as follows: $\begin{array}{lr}\text { Sales } & \$ 1,230,000 \\\text { Selling and administrative expenses } & 210,000 \\\text { Direct materials used } & 300,000 \\\text { Direct labour } & 350,000 \\\text { Manufacturing overhead } & 455,000\end{array}$

$\text { Inventories }$
$\begin{array}{lrr} & \text { Dec. } 1 & \text { Dec. } 31 \\\text { Direct materials }& \$ 36,000 & \$ 42,000 \\\text { Work-in-process } & 75,000 & 84,000 \\\text { Finished goods } & 69,000 & 57,000\end{array}$
-Refer to Becker Corporation . What are the prime costs?

• A) $564,000
• B) $650,000
• C) $805,000
• D) $969,000

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Definitions:

Operating Cash Flow

Cash generated from a company's normal business operations, indicating whether a company can generate sufficient positive cash flow to maintain and grow its operations.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet account balances to calculate cash flow from operating activities.

Statement Of Cash Flows

A document detailing the inflows and outflows of cash within a company, categorized into operating, investing, and financing sections, essential for assessing financial health.

Operating Section

Part of an income statement that discloses revenues and expenses related directly to the core business operations.