Given the Following Data for Mehring Company, Compute (A) Total

question 130

Short Answer

Given the following data for Mehring Company, compute (A) total manufacturing costs and (B) cost of goods manufactured: $\begin{array}{lrlr}\text { Direct materials used } & \$ 230,000 & \text { Beginning work in process } & \$ 30,000 \\\text { Direct labor } & 150,000 & \text { Ending work in process } & 15,000 \\\text { Manufacturing overhead } & 255,000 & \text { Beginning finished goods } & 38,000 \\\text { Operating expenses } & 263,000 & \text { Ending finished qoods } & 23,000\end{array}$

$\begin{array}{lll}&(A)&(B)\\\text { a. } & \$ 620,000 & \$ 650,000 \\\text { b. } & \$ 635,000 & \$ 620,000 \\\text { c. } & \$ 635,000 & \$ 650,000 \\\text { d. } & \$ 650,000 & \$ 665,000\end{array}$

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Definitions:

Deferred Tax Liabilities

Future tax obligations due to temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements.

GAAP

Stands for Generally Accepted Accounting Principles, which are a common set of accounting rules and standards used in the United States for financial reporting.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is gaining global acceptance.

Deferred Taxes

Taxes applicable to income that has been accrued but not yet paid, due to differences between accounting and tax legislation.