Management of Solman Corporation Has Asked Your Help as an Intern

question 61

Multiple Choice

Management of Solman Corporation has asked your help as an intern in preparing some key reports for June. The beginning balance in the raw materials inventory account was $20,000. During the month, the company made raw materials purchases amounting to $69,000. At the end of the month, the balance in the raw materials inventory account was $32,000. Direct labor cost was $24,000 and manufacturing overhead was $71,000. The beginning balance in the work in process account was $24,000 and the ending balance was $19,000. The beginning balance in the finished goods account was $53,000 and the ending balance was $58,000. Selling expense was $20,000 and administrative expense was $35,000.
-The prime cost for June was:

• A) $95,000
• B) $93,000
• C) $81,000
• D) $55,000

---

Definitions:

Public Land

Land owned by the government rather than private individuals, often designated for public use, conservation, or as government facilities.

Western Settlement

The expansion and colonization of areas in North America by European settlers, primarily in the 19th century, moving westward.

Non-War-Related Legislation

Laws and regulations passed by a legislative body that deal with matters outside of military conflict or national defense issues.

Federal Government

The national government of a federal country, such as the United States, which shares power with state and local governments.