Q1: Each unit of finished product manufactured by GH Company requires:

-2.5 liters of direct material at a cost of $7 per liter

-30 minutes of direct labor at $18 per hour.

-Factory overhead is applied at the rate of $20 per direct labor hour.

Finished product ending inventory is 3000 units, and direct material ending inventory is 5000 liters. What is the total ending inventory value?

Select one:

a. $137,000

b. $144,500

c. $152,000

d. $170,000

e. Neither of the above

Q7: Seven Inc. anticipates sales in February to be $270,000. Inventory is $94,500 at the start of February, and is expected to increase by $8,500 by the end of the month. Mark-up on costs is 200%. What is the purchase amount (in dollars) for February?

Select one:

a. $143,500

b. $116,500

c. $98,500

d. Neither of the above