Ogleby Inc During 2017, Ogleby Purchased $980,000 of Raw Materials, Incurred Direct

question 136

Multiple Choice

Ogleby Inc.'s accounting records reflect the following inventories: $\begin{array}{lrr}&\text { Dec. 31, } 2016&\text { Dec. 31, } 2017\\\text { Raw materials inventory } & \$ 120,000 & \$ 96,000 \\\text { Work in process inventory } & 156,000 & 174,000 \\\text { Finished qoods inventory } & 150,000 & 138,000\end{array}$ During 2017, Ogleby purchased $980,000 of raw materials, incurred direct labor costs of $175,000, and incurred manufacturing overhead totaling $224,000. How much would Ogleby Manufacturing report as cost of goods manufactured for 2017?

• A) $1,229,000
• B) $1,397,000
• C) $1,391,000
• D) $1,385,000

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of an organization.