Multiple Choice Questions 1) The following information is available for product N6. Direct material.Multiple Choice Questions 1) The following information is available for product N6. Direct material costs …………………… $67.00 per unit of product Costs of machining ……………………. $47.50 per machine hour Costs of packing ………………………. $16.90 per carton What is the total full cost of an order for 1,000 units of product N6 which will use 60 machine hours and 50 cartons? A. $67 000 B. $70 695 C. $131 400 D. $114 500 2) The fundamental purpose of accounting standards is to improve: A. Company share price B. Company profits C. Resource allocation in business D. All of the above 3) If opening equity is $60 000, assets and liabilities at the end of the period are $178 000 and $55 000 respectively and owner s drawings are $11 000, profit for the period must be: A. $52 000 B. $74 000 C. $63 000 D. Cannot be determined 4) Financial reports of large companies often report consolidated entity results. A consolidated entity is: A. A parent entity and its subsidiaries B. An entity that owns shares in another entity C. A group of subsidiaries D. None of the above 5) Which method of inventory pricing will result in the highest figure for closing inventory during a period of rising prices? A. Last-in, first-out B. Weighted average cost C. First-in, first-out D. None of the above 6) A machine is purchased for $50 000. It is estimated that it has a useful life of 5 years and will then be sold for
