ABC Inc. had the following beginning and ending inventory balances for the year ended

December 31, 2020: January 1 December 31 Materials $10,000 $ 8,000 Work in Process $18,000 $17,000 Finished Goods $21,000 $16,500 In addition, direct labour costs of $30,000 were incurred, overhead equalled $42,000, materials purchased were $27,000, and selling and administrative costs were $22,000. ABC Inc. sold 25,000 units of product during the year at a sales price of $5.00 per unit.

8. Refer to the above. What was the amount of Cost of Goods Manufactured for the year? A) $100,000 B) $101,000 C) $102,000 D) $124,000

9. Refer to above. What was ABC Inc. operating income or loss for the year? A) $(3,500) B) $5,500 C) $18,500 D) $125,000

10. Which of the following types of businesses is most likely to use a process costing system? A) Print shop B) Doctors office C) Home building D) Petroleum