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Problem 1: The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000. If the ending inventory of finished goods was $30,000, the beginning inventory of finished goods must have been:
A. $20,000
B. $50,000
C. $110,000
Problem 2: Micro Computer Company has set up a toll-free telephone line for customer inquiries regarding computer hardware produced by the company. The cost of this toll-free line would be classified as which of the following?
A. Product cost
B. Manufacturing overhead
C. Direct labor
D. Period cost
While what you describe involves a comparison, it would not involve two samples of at least 30 observations. There is data on all cars by category.
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