Reference no: EM132787113

Problem 1: Samara Company reported a cost of goods manufactured of KD 260,000, with the firm's year-end balance sheet revealing work in process and finished goods of KD 35,000 and KD 67,000, respectively. If supplemental information disclosed raw materials used in production of KD 40,000, direct labor of KD 70,000, and manufacturing overhead of KD 120,000, the company's beginning work in process must have been:

Select one:

a. KD 97,000

b. KD 65,000

c. KD 5,000

d. KD 37,000

Problem 2: Which of the following is true for service firms?

Select one:

a. They incur inventoriable costs.

b. They do not record price in their ledgers.

c. They have no materials inventory

d. They have no need at all to know the costs incurred.