ch03 Key 1. TRUE

2. FALSE

3. TRUE

4. FALSE

5. FALSE

6. D

7. D

8. C

9. A

10. B

11. A

12. B

13. D

14. D

15. D

16. D

17. E

18. A

19. E

20. D

21. A

22. A

23. E

24. D

25. A

26. D

27. A

28. C

29. C

30. B

31. A

32. E

33. C

34. B

35. A

36. B

37. A

38. B

39. A

40. A

41. A

42. A

43. E

44. B

45. A

46. B

47. A

48. B

49. C

50. D

51. A

52. C

53. E

54. B

55. B

56. D

57. D

58. C

59. B

60. B

61. C

62. E

63. D

64. B

B. Taffy completed 7,600 units (9,500 units 80%) during 20x3. Since 2,600 units were found in finished-goods inventory, the company disposed of 5,000 completed sets (7,600 - 2,600) throughout the year. Seventy of these sets were used in marketing activities; thus, 4,930 (5,000 - 70) were sold, resulting in a cost of goods sold of $49,300 (4,930 units $10).Finished goods: 2,600 units $10 = $26,000Work in process: (9,500 units - (9,500 80%) = 1,900 units; 1,900 units $10 = $19,000Raw materials: (12,500 units - 9,500 units issued to assembly) $10 = $30,000Cost per case, pad, and pen: $7 + $3 = $10Cost per pen: $3 (given)65. A. Cost per case and pad: $87,500 12,500 units = $7 per unit