Benson Inc During 2017, Benson Purchased $1,450,000 of Raw Materials, Incurred Direct

question 62

Multiple Choice

Benson Inc.'s accounting records reflect the following inventories: $\begin{array}{lrr}& \text { Dec. 31,2016}& \text { Dec. 31,2017}\\\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \\\text { Work in process inventory } & 104,000 & 116,000 \\\text { Finished goods inventory } & 100,000 & 92,000\end{array}$ During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000.
How much is total manufacturing costs incurred during 2017 for Benson?

• A)$1,864,000
• B)$1,876,000
• C)$1,860,000
• D)$1,872,000

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Definitions:

AASB 141

The Australian Accounting Standards Board standard related to Agriculture, guiding how agricultural activities and assets should be accounted for.

IAS 41

IAS 41 is an International Accounting Standard that addresses the accounting for agricultural activity, including the management of the biological transformation and harvest of biological assets.

Investment Property

Real estate property that has been purchased with the intention of earning a return on the investment through rental income, the future resale of the property, or both.

AASB 140

The Australian Accounting Standards Board regulation relating to the accounting for investment property.