WUEMENT ACCOUNTING y on January 1, 20x8 of $32.500 and raw materials 15. Francisco Industries has raw materials inventory on January 1, 20x8 of $32,000 inventory on December 31, 20x8 of $26,700. If purchases of ember 31, 20x8 of $26,700. I purchases of raw materials were $135,000 during the year, what was the amount of raw materials used during the year? A. $129,200. B. $140,800. C. $135,000. D. $146,600. E. None of the answers is correct. 16. Rose Florists uses an activity-based costing sys Denvering the bouquets to its commercial customers Company personnel who earn $180,000 typically perform both tasks; other firm-wide overhead is expected to total $70,000. These costs are allocated as follows: Bouquet Production Delivery Other Wages and salaries ............ 60%..................... 30% .............. 10% Other overhead ................... 50%..................... 35% .............. 15% Rose anticipates making 20,000 bouquets and 4.000 deliveries in the upcoming year. The cost of wages and salaries and other overhead that would be charged to each bouquet made is: A. $7.15. B. $8.75. C. $12.50 D. $13.75 E. None of the answers is correct. 17. Consider the following statements about why prices are often based on product costs: 1. Companies sell many products and services, and cost-based approaches provide a simple and direct pricing method. II. The cost of a product or service provides a lower limit or floor, below which price should not be set in the long run. III. Determining a company's demand and marginal revenue curves is difficult, costly, and time consuming Which of the above statements is (are) true? A. I only B. Ill only C. I and III. D. II and III. E. I, II, and