A company has total assets of $440,000, current assets of $307,000, total liabilities of $185,000, and current liabilities of $152,000. What amount of working capital is available to meet its obligations?

Multiple Choice

• $122,000

• $155,000

• $255,000

• $288,000

Costmore Manufacturing has provided the following operating results for its first year operations:

Beginning inventory of finished goods	0
Units produced (no work in process)	38,000
Units sold	25,000
Units in ending inventory of finished goods	13,000
Sales price	$ 65	per unit
Variable manufacturing costs	$ 17	per unit manufactured
Variable selling and administrative expenses	$ 10	per unit sold
Fixed manufacturing costs for the year	$ 190,000
Fixed selling and administrative expenses for the year	$ 204,000

Using the absorption costing method, the value of ending inventory of finished goods is:

Multiple Choice

• $351,000

• $221,000

• $507,000

• $286,000

Benefits of maintaining inventory records on a perpetual basis include all of the following except:

Multiple Choice

• provides improved cost control.

• avoid annual physical counts.

• easier to identify potential shortages.

• improved customer experiences.

Which of the following is NOT considered regarding the purchase of new equipment when looking at the net income under each alternative?

Multiple Choice

• annual sales

• depreciation expense per year on the new equipment

• differential labor costs

• additional fixed costs under an alternative

If actual overhead costs exceed the overhead applied during the year, the difference represents ____________.

Multiple Choice

• work in process

• accounts payable

• overapplied overhead

• underapplied overhead