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:

Feedback Control

A system that adjusts its operation based on the difference between the actual outcome and the desired result to maintain the target performance.

Low-Cost Strategy

A competitive strategy focusing on offering products or services at the lowest possible price point to attract customers.

Quality by Inspection

A method of ensuring product or service quality by examining the finished product for defects or deviations from standards.

Service Operations

The activities involved in delivering services to customers, focusing on quality, efficiency, and the overall service experience.