Inventory Balances for Balmer Company in April 2018 Are as Follows

question 185

Multiple Choice

Inventory balances for Balmer Company in April 2018 are as follows: $$\begin{array} { l c c } & \text { April 1,2018 } & \text { April } 30,2018 \\\text { Raw materials } & \$ 40,000 & \$ 35,000 \\\text { Work in process } & 67,500 & 59,800 \\\text { Finished goods } & 150,000 & 120,000\end{array}$$ During April, purchases of direct materials were $58,000. Direct labor and factory overhead costs were $82,000 and $110,000, respectively.
Prime costs for April were:

• A)$145,000.
• B)$140,000.
• C)$88,000.
• D)$152,700.

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Definitions:

Sales on Account

Transactions where goods are sold and payment is deferred to a future date; this is typically tracked through accounts receivable.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, before any purchases or sales have occurred.

Projected Sales

An estimate of the amount of revenue that a company expects to earn in a future period from the sale of goods or services.

Finished Goods

These are products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.