Ogleby Inc During 2017, Ogleby Purchased $980,000 of Raw Materials, Incurred Direct

question 147

Multiple Choice

Ogleby Inc.'s accounting records reflect the following inventories: $\begin{array}{lrr}&\text { Dec. } 31,2016&\text { Dec. } 31,2017\\\text { Raw materials inventory } & \$ 120,000 & \$ 96,000 \\\text { Work in process inventory } & 156,000 & 174,000 \\\text { Finished qoods inventory } & 150,000 & 138,000\end{array}$ During 2017, Ogleby purchased $980,000 of raw materials, incurred direct labor costs of $175,000, and incurred manufacturing overhead totaling $224,000.
How much is total manufacturing costs incurred during 2017 for Ogleby?

• A)$1,385,000
• B)$1,403,000
• C)$1,379,000
• D)$1,415,000

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Definitions:

Group Pressure

The influence exerted by a group that encourages conformity of behavior and belief.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Asch

Solomon Asch, a psychologist known for his research on conformity and social pressure.

Attribution Theory

A psychological framework that explains how individuals deduce the causes of their own and others' behavior, emphasizing the role of thought processes.