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

question 49

Multiple Choice

Ogleby Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c } & \text { Dec. 31,2016 } & \text { Dec. 31, 2017 } \\\text { Raw materials inventory } & \$ 120,000 & \$ 96,000 \\\text { Work in process inventory } & 156,000 & 174,000 \\\text { Finished goods inventory } & 150,000 & 138,000\end{array}$$ 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:

Lease

A contractual agreement in which a property owner allows a tenant the use of the property for a specified period of time in exchange for payment.

Lessee

A person or entity who leases or rents property from a lessor, obtaining the rights to use and occupy the property according to the terms of the lease agreement.

Title Does Not Pass

A legal principle indicating that the ownership of a property or asset has not been transferred from the seller to the buyer, often due to certain conditions not being met.

CISG

Stands for the United Nations Convention on Contracts for the International Sale of Goods, which provides a uniform framework for international commerce.