Department 3 Has 2500 Hours

question 17

Multiple Choice

Department 3 has 2500 hours. Transfers are allowed to departments 2 and 4, and from departments 1 and 2. If A_i measures the labor hours allocated to department i and T_ij the hours transferred from department i to department j, then

• A)T₁₃ + T₂₃ - T₃₂ -T₃₄ - A₃ = 2500
• B)T₃₁ + T₃₂ - T₂₃ -T₄₃ + A₃ = 2500
• C)A₃ + T₁₃ + T₂₃ -T₃₂ - T₃₄ = 2500
• D)A₃ - T₁₃ - T₂₃ + T₃₂ + T₃₄ = 2500

---

Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Cost Of Goods Sold

Expenses directly tied to the production process of goods a company markets.

Beginning Inventory

The value of goods available for sale or use at the start of an accounting period, carried over from the preceding period.

Cost Of Goods Sold

The total cost directly involved in producing goods or services, including materials and labor.