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

question 81

Multiple Choice

Benson Inc.'s accounting records reflect the following inventories: $\begin{array}{lrr}&\text { Dec. 31, } 2016&\text { Dec. 31, } 2017\\\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \\\text { Work in process inventory } & 104,000 & 116,000 \\\text { Finished qoods inventory } & 100,000 & 92,000\end{array}$ During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. Assume Benson's cost of goods manufactured for 2017 amounted to $1,660,000. How much would it report as cost of goods sold for the year?

• A) $1,668,000
• B) $1,568,000
• C) $1,760,000
• D) $1,652,000

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