Horton Company Produces and Sells Two Products: Round and Square

question 96

Multiple Choice

Horton Company produces and sells two products: round and square tables. In August 20x0, the budget projected the following for 20x1:
The tables are manufactured using the following direct materials:

Budgeted data for 20x1 direct materials are:

Budgeted data for 20x1 Direct labour and overhead are:

The cost of purchases for direct material P for 20x1 is:

• A)$2,805,000
• B)$2,720,000
• C)$2,635,000
• D)$2,550,000

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Definitions:

Management

The process of planning, organizing, leading, and controlling an organization's resources to achieve specific goals.

FIFO

"First In, First Out," an inventory valuation method where the oldest inventory items are recorded as sold first.

Perpetual Inventory System

A method of accounting for inventory that records sales and purchases of inventory instantly through the use of computerized point-of-sale systems and enterprise asset management software.