Becker Corporation
Information from the Records of Becker Corporation for December

question 127

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 Big Blue Bubble Company. What was the prime cost per unit?

• A) $11
• B) $25
• C) $30
• D) $34

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Definitions:

Real World

A term referring to actual conditions and practical experiences in everyday life, as opposed to theoretical or simulated environments.

Automatic Dividend Reinvestment

A program that automatically uses dividends paid by investments to purchase more shares of those investments.

Homemade Dividend Policies

Investment strategies whereby investors create their own dividend stream by selling a portion of their portfolio of equities.

Stockholders

Individuals or entities that own shares in a corporation, thereby having partial ownership and potentially receiving dividends.