Use the Following Information for Questions
Caltreck Manufacturing Inc

question 72

Multiple Choice

Use the following information for questions
Caltreck Manufacturing Inc.'s accounting records reflect the following inventories:
$$\begin{array} { l c c c } & \underline{ \text { Dec. 31,2019 } }& \underline{\text { Dec. 31, 2020} } \\\text { Raw materials inventory } & \$ 100,000 & \$ 80,000 \\\text { Wark in process irventory } & 130,000 & 145,000 \\\text { Finished goods irventory } & 125,000 & 115,000\end{array}$$ During 2020, Caltreck purchased $950,000 of raw materials, incurred direct labour costs of $125,000, and incurred manufacturing overhead totalling $160,000.
-How much is total manufacturing costs incurred during 2020 for Caltreck?

• A)$1,240,000
• B)$1,255,000
• C)$1,235,000
• D)$1,250,000

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Definitions:

Communism

A political and economic ideology advocating for a classless society in which the means of production are owned and controlled by the community as a whole.

Consumerism

A social and economic order that encourages the purchase of goods and services in ever-greater amounts.

Cultural Diffusion

The spread of cultural beliefs and social activities from one group to another, blending and integrating different cultural practices.

Production

Is the human capacity to make and use the tools and technology that improve our ability to take what we want from nature.