Balance Sheet and Income Statement Data Indicate the Following

question 164

Multiple Choice

Balance sheet and income statement data indicate the following: Based on the data presented above, what is the number of times bond interest charges were earned (round to one decimal point) ?

• A) 3.7
• B) 4.4
• C) 4.5
• D) 3.5

---

Definitions:

Work in Process Inventory

Goods that are in the process of being manufactured but are not yet complete.

Raw Materials Inventory

The stock of unprocessed materials held by a company, intended for use in production.

Direct Labor

Costs of wages for employees who physically produce products or serve customers directly.

Process Costing System

An accounting system used when products are identical and it's impractical to track individual costs, totaling costs for a period and spreading them evenly across all units produced.