A Company Used $35,000 of Direct Materials, Incurred $73,000 in Direct

question 112

Multiple Choice

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was

• A) $218,000
• B) $226,000
• C) $190,000
• D) $222,000

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Definitions:

Labour Cost

The total expenditure incurred by employers to compensate the workforce, including wages, benefits, and any other employee-related expenses.

Per Unit

A term used to define the cost, price, or quantity relative to a single unit of a product or service.

Political Risk

The likelihood of financial loss or other adverse effects on investment outcomes due to political instability, government actions, or geopolitical tensions in a region.

Cultural Issues

Differences in beliefs, values, practices, and behaviors among people from different backgrounds, which can impact interactions and create challenges in various contexts.