Assuming That the Cost of Goods Manufactured Is $3,460,000 Compute

question 72

Multiple Choice

Assuming that the cost of goods manufactured is $3,460,000 compute the cost of goods sold using the following information. $\begin{array}{lll}\text { Raw materials inventory, January 1 } & 30,000 \\\text { Raw materials inventory, December } 31 & 60,000 \\\text { Work in process, January 1 } & 27,000 \\\text { Work in process, December 31 } & 18,000 \\\text { Finished goods, January 1 } & 60,000 \\\text { Finished goods, December 31 } & 48,000\\\text { Raw materials purchases } & 1,800,000 \\\text { Direct labor } & 890,000 \\\text { Factory utilities } & 225,000 \\\text { Indirect labor } & 75,000 \\\text { Factory depreciation } & 500,000 \\\text { Operating expenses } & 630,000\end{array}$

• A)$3,469,000.
• B)$3,412,000.
• C)$3,448,000.
• D)$3,472,000.

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Definitions:

Rights Warning

Typically refers to the Miranda warning, a notification given by police in the U.S. to criminal suspects in police custody, advising them of their right to silence and legal counsel.

Reasonableness

A standard of fairness and rational behavior expected in legal and contractual relationships.

Presumed Innocent

The principle that an individual is considered innocent until proven guilty in a court of law.

Commercial Property

Real estate property that is used for business activities, such as offices, retail spaces, warehouses, and industrial buildings.