SurfsUp Specialty Products Has the Following Inventory Account Balances and Related

question 28

Multiple Choice

SurfsUp Specialty Products has the following inventory account balances and related manufacturing cost flow information for the month of October: $\begin{array}{lll}\text { Raw Materials, October } 1 & \$ 20,000 \\\text { Raw Materials, October } 31 & \$ 25,000 \\\text { Work in Process, October } 1 & \$ 45,000 \\\text { Work in Process, October } 31 & \$40,000 \\\text { Finished Goods, October } 1 & \$ 68,000 \\\text { Finished Goods, October } 31 & \$ 62,000\\\text {Raw materials purchased}&?\\\text {Raw materials used}&\$75,000\\\text {Direct labor incurred}&?\\\text {Manufacturing overhead incurred}&\$120,000\\\text {Cost of goods manufactured}&\$300,000\\\text {Cost of goods sold}&? \end{array}$

Direct labor incurred in October is:

• A)$85,000.
• B)$100,000.
• C)$105,000.
• D)$200,000.

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Definitions:

Deadweight Loss

A situation in economics where the total of consumer and producer surplus is not maximized due to factors like taxes or subsidies.

Monopoly Output

The quantity of goods or services produced and offered for sale by a monopolist, set to maximize profits under conditions of limited competition.

Competitive Output

The level of output at which a firm in a competitive market maximizes its profits, determined by the intersection of the industry's supply and demand curves.

Consumer Surplus

The discrepancy showcasing the difference between the sum consumers are eager to pay and the price eventually paid.