Using the Following Data for January, Calculate the Cost of Goods

question 116

Multiple Choice

Using the following data for January, calculate the cost of goods manufactured: $$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 38,000 \\\hline \text { Direct labour } & \$ 24,000 \\\hline \text { Manufacturing overhead } & \$ 17,000 \\\hline \text { Beginning work in process inventory } & \$ 10,000 \\\hline \text { Ending work in process inventory } & \$ 11,000 \\\hline\end{array}$$ The cost of goods manufactured was:

• A)$80,000.
• B)$78,000.
• C)$89,000.
• D)$79,000.

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Definitions:

Merchantability

Implies that a product sold by a merchant is fit for the ordinary purposes for which such goods are used and meets the consumer's expectations.

Express Warranty

A clearly stated assurance or guarantee given by a seller about the condition or quality of a product or service.

Implied Warranty

A legal concept that guarantees a product will perform as widely expected without being explicitly stated in a contract.

Warranty of Title

A guarantee by a seller to a buyer that the seller has the right to transfer ownership and no undisclosed encumbrances exist.