Kelita's Kar Kare Kompany Had the Following Cost and Inventory

question 74

Multiple Choice

Kelita's Kar Kare Kompany had the following cost and inventory data for the month: Costs incurred for the month:
Direct labour $6,900
Indirect labour 1,500
Direct materials purchased 4,500
Factory utilities 2,200
Factory amortization 3,000
Factory supervision 1,200
Inventories:
Ending Beginning
Direct materials $1,500 $1,800
Work in process 4,500 4,050
Finished goods 6,000 5,250
Assume that total production costs incurred for the month were $15,000. What was the cost of goods sold?

• A)$13,800
• B)$15,300
• C)$19,800
• D)$20,550

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Definitions:

Multifactor Model

An investment model that seeks to describe the expected returns on a security based on various risk factors, providing a more comprehensive view than models based on a single factor.

Market Indexes

Benchmarks that track the performance of a specific basket of stocks, representing a particular sector or the market as a whole.

Chen, Roll, and Ross

Refers to a model developed by the economists Stephen A. Ross, Randolph W. Roll, and Edwin H. Chen that enhances the capital asset pricing model by including factors related to macroeconomic risk.

Multifactor Models

Financial models that use multiple variables to explain or predict asset prices and returns, incorporating factors like size, value, and momentum.