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

---

Definitions:

Goldratt And Cox

They are the authors of "The Goal," a book introducing the Theory of Constraints, a methodology for identifying and managing constraints to improve performance.

Straddles Demand

An approach that aims to meet demand efficiently by preparing for both overestimation and underestimation scenarios.

Average Unit Cost Curve

A graphical representation showing how the cost per unit of producing a good changes with variations in the volume of its production.