What are three different types of inventory that manufacturing companies hold?

a. Variable, fixed, and overhead

b. Production, retail, and merchandising

c. Direct materials, direct labour, and overhead

d. Raw materials, work-in-process, and finished goods

2) If contribution margin is $140,000, sales is $300,000, and net income is $40,000, then variable and fixed expenses are

a. Variable $160,000; Fixed $260,000

b. Variable $160,000; Fixed $100,000

c. Variable $440,000; Fixed $260,000

d. Variable $100,000; Fixed $160,000

3) For Wickham Co., sales is $3,000,000, fixed expenses are $900,000, and the contribution margin ratio is 36%. What is required sales in dollars to earn a target operating income of $600,000?

a. $1,666,667

b. $4,166,667

c. $8,333,333

d. $2,500,000

4) Ramirez Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $90 and a selling price of $150. Q-Drive Plus has variable costs per unit of $105 and a selling price of $195. The weighted-average unit contribution margin for Ramirez is

a. $69.

b. $150.

c. $75.

d. $81.

5) All of the following items are debited to the Work-in-Process Inventory account except:

a. Cost of the completed goods being transferred out of the plant.

b. Direct labor cost consumed/incurred.

c. Applied factory overhead cost.

d. Direct materials cost consumed/used.

6) Montreal Industries Inc. had the following activities during the year:

Direct materials:

Beginning inventory $50,000

Purchases 154,000

Ending inventory 26,000

Direct manufacturing labour 40,000

Manufacturing overhead 30,000

Ending work-in-process inventory 10,000

Beginning work-in-process inventory 2,000

Ending finished goods inventory 40,000

Beginning finished goods inventory 60,000