1 Instructions: in the blue box select the best answer. 2 3 Use the following information for the next 3 questions: 4 5 6 Montreal Industries Inc. had the following activities during the year: Direct materials: 7 Beginning inventory 50,000 8 Purchases 154,000 9 Ending inventory 26,000 10 Direct manufacturing labour 40,000 11 Manufacturing overhead 30,000 12 Ending work-in-process inventory 10,000 13 14 Beginning work-in-process inventory Ending finished goods inventory 2,000 40,000 15 Beginning finished goods inventory 60,000 16 29 30 31 Q3: What is Montreal's cost of goods sold during the year? (2 Marks) a) $260,000 32 33 b) $232,000 34 c) $220,000 35 d) $200,000 36 37 38 Q4:If company A has a higher degree of operating leverage than company B, then which of the following 39 statements is true? 40 41 42 43 44 a) Company A has higher variable expenses. b) Company A is less risky. c) Company A is more profitable. d) Company A is riskier