When aggregate demand meets aggregate supply in the horizontal portion of the aggregate supply curve:

Select one:
a. a decrease in demand will cause
prices to fall but no change in output.
b. a decrease in demand will cause
prices to rise but no change in output.
c. a decrease in demand will cause
output to fall but no change in prices
d. a decrease in demand will cause
output to rise but no change in prides.

= a decrease in demand will cause
output to fall but no change in prices

The following cost and inventory data are taken from the accounting records of mason company for the year just completed: costs incurred: direct labor cost $ 90,000 purchases of raw materials $ 134,000 manufacturing overhead $ 205,000 advertising expense $ 45,000 sales salaries $ 101,000 depreciation, office equipment $ 225,000 beginning of the year end of the year inventories: raw materials $ 8,100 $ 10,300 work in process $ 5,900 $ 21,000 finished goods $ 77,000 $ 25,800 required: 1. prepare a schedule of cost of goods manufactured. 2. prepare the cost of goods sold section of mason company’s income statement for the year.