Using $3,000,000 as the Total Manufacturing Costs, Compute the Cost

question 19

Multiple Choice

Using $3,000,000 as the total manufacturing costs, compute the cost of goods manufactured using the following information. $$\begin{array} { l r } \text { Raw materials inventory, January 1 } & \$ 20,000 \\\text { Raw materials inventory, December 31 } & 40,000 \\\text { Work in process, January 1 } & 18,000 \\\text { Work in process, December 31 } & 12,000 \\\text { Finished goods, January 1 } & 40,000 \\\text { Finished goods, December 31 } & 32,000 \\\text { Raw materials purchases } & 1,700,000 \\\text { Direct labor } & 760,000 \\\text { Factory utilities } & 150,000 \\\text { Indirect labor } & 50,000 \\\text { Factory depreciation } & 400,000 \\\text { Operating expenses } & 420,000\end{array}$$

• A) $3,014,000.
• B) $2,994,000.
• C) $3,006,000.
• D) $3,008,000.

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Definitions:

Paul Ehrlich

An American biologist and researcher known for his warnings about population growth and limited resources, and for his work in ecology and entomology.

Food Production

The process of creating food by farming, ranching, or fishing, encompassing everything from agricultural cultivation to livestock breeding.

Demography

The scientific study of population.

Subsistence

refers to the means by which individuals or societies fulfill their basic needs for survival, such as food, shelter, and clothing, often through direct methods like farming, hunting, or gathering.