Benson Inc During 2017 Benson Purchased $1450000 of Raw Materials Incurred Direct

question 168

Multiple Choice

Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c } & \text { Dec. 31,2016 } & \text { Dec. 31, 2017 } \\\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \\\text { Work in process inventory } & 104,000 & 116,000 \\\text { Finished goods inventory } & 100,000 & 92,000\end{array}$$ During 2017 Benson purchased $1450000 of raw materials incurred direct labor costs of $250000 and incurred manufacturing overhead totaling $160000. How much raw materials were transferred to production during 2017 for Benson?

• A) $1386000
• B) $1466000
• C) $1450000
• D) $1434000

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Definitions:

Representative Heuristic

A mental shortcut that involves making a probability judgement by comparing an object or event to a prototype of the object or event.

Additive Strategy

An approach where elements are added together to solve problems or make decisions, often seen in mathematics or decision-making processes.

Anchoring

Overestimation of the importance of a factor by focusing on it to the exclusion of other relevant factors.

Framing

The way information is presented so as to emphasize either a potential gain or a potential loss as the outcome.