Assume Clean Motors Ltd Manufactures Only One Component for the Motor

question 13

Multiple Choice

Assume Clean Motors Ltd manufactures only one component for the motor vehicle industry.In one year the company produced 25 000 units of the component of which 22 000 units were sold.The following costs were recorded for that year:
$\begin{array}{lr}\text { Direct material } & \$ 750000 \\ \text { Direct labour } & 450000 \\ \text { Manufacturing overhead } & 300000 \\ \text { Administrative expenses } & 84000\end{array}$
If there were 5000 units in beginning inventory,calculate the value of ending inventory for Clean Motors Ltd.

• A) $480 000
• B) $180 000
• C) $300 000
• D) $320 000

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Fluid Intelligence

The capacity to solve novel problems, use logic in new situations, and identify patterns.

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The ability to use learned knowledge and experience, a component of cognitive abilities that contrasts with fluid intelligence.

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