Milton Company has total current assets of $63,000, including inventory of $19,000, and current liabilities of $39,000. The company's current ratio is:

Milton Company has total current assets of $63,000, including inventory of $19,000, and current liabilities of $39,000. The company's current ratio is:
0.62.


2.10.


1.62.



1.13.

Answer
1.62. Correct
Explanation
Current ratio = Current assets ÷ Current liabilities
Current ratio = $63,000 ÷ $39,000 = 1.62

The Juarez Corporation incurred the following transactions during its first year of operations. (Assume all transactions involve cash).

1) Acquired $2,600 of capital from the owners.

2) Purchased $460 of direct raw materials.

3) Used $370 of these direct raw materials in the production process.

4) Paid production workers $560 cash.

5) Paid $360 for manufacturing overhead (applied and actual overhead are the same).

6) Started and completed 300 units of inventory.

7) Sold 210 units at a price of $6 each.

8) Paid $200 for selling and administrative expenses.


The amount of cost of goods manufactured would be:
$1,390.
$1,290.Correct
$1,190.
$990.
Answer
$1,290.Correct
Explanation
Total manufacturing costs = Direct materials used + Direct labor + Actual overhead

Total manufacturing costs = $370 + $560 + $360 = $1,290

Cost of goods manufactured = Beginning work in process + Total manufacturing costs − Ending work in process

Cost of goods manufactured = $0 + $1,290 − $0 = $1,290