Selected Data Concerning the Past Year's Operations of the Intelligent

question 59

Multiple Choice

Selected data concerning the past year's operations of the Intelligent Creatures Corporation are as follows: What is the cost of direct materials purchased?
$\begin{array}{lr}\text { Selling and administrative expenses } & \$ 225,000 \\\text { Direct materials used } & 397,500 \\\text { Direct labour } & 450,000\end{array}$

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Inventories }$
$\begin{array}{lrr} & \text { Dec. } & \text { Dec. } 31 \\\text { Direct materials } & \$ 36,000 & \$ 42,000 \\\text { Work in process } & 75,000 & 84,000 \\\text { Finished goods } & 69,000 & 57,000\end{array}$

• A)$367,500
• B)$397,500
• C)$403,500
• D)$405,000

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Definitions:

Facilitating Function

Activities that help in the smooth transaction of goods and services from producers to consumers, such as transportation and storage.

Product Assortments

The range or variety of product lines and individual products that a company offers for sale to its target market.

Channel Intermediaries

Businesses or individuals that act as intermediaries within the distribution channel, facilitating the movement of goods from manufacturers to consumers.

Logistical Function

Refers to the planning, implementation, and controlling of efficient and effective flow and storage of goods, services, and related information.