Using $3000000 as the Total Manufacturing Costs Compute the Cost

question 52

Multiple Choice

Using $3000000 as the total manufacturing costs compute the cost of goods manufactured using the following information. $\begin{array}{lll}\text { Raw materials inventory, January 1 } & \$ 20,000 \\\text { Raw materials inventory, December 31 } & 40,000 \\\text { Work in process, January 1 } & 18,000 \\\text { Work in process, December 31 } & 12,000 \\\text { Finished goods, January 1 } & 40,000 \\\text { Finished goods, December 31 } & 32,000\\\text { Raw materials purchases } & 1,700,000 \\\text { Direct labor } & 760,000 \\\text { Factory utilities } & 150,000 \\\text { Indirect labor } & 50,000 \\\text { Factory depreciation } & 400,000 \\\text { Operating expenses } & 420,000\end{array}$

• A) $3014000.
• B) $2994000.
• C) $3006000.
• D) $3008000.

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Definitions:

Milton Friedman

was an American economist known for his strong belief in free-market capitalism and for being a leading proponent of monetarism.

Economic Responsibility

Refers to the duty of organizations to make decisions that benefit the financial health of both the company and the wider economy.

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving positioning a business for competitive advantage.

Economic Environment

The combination of economic factors that impact the operation and performance of businesses, including inflation, employment rates, economic policy, and market demand.