The Clarke Company Provided the Following Information for the Month

question 48

Multiple Choice

The Clarke Company provided the following information for the month of December: $$\begin{array} { l l } \text { Beginning work-in-process } & \$ 12,000 \\\text { Ending work-in-process } & \$ 9,000 \\\text { Direct labor/materials used } & \$ 14,000 \\\text { Manufacturing overhead } & \$ 7,000\end{array}$$ The company's cost of goods manufactured for December is:

• A)$42,000
• B)$24,000
• C)$33,000
• D)$28,000

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Definitions:

Segregation Of Duties

An internal control method used to prevent fraud and errors, which involves dividing tasks and responsibilities among different people to ensure no single individual controls all aspects of a transaction.

Internal Controls

Mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Computerized Systems

Electronic systems that use computers to manage, store, and process data, often used in modern accounting practices.

Reliable Financial Reporting

Financial reporting that accurately reflects an entity's financial performance and position, ensuring users can depend on the veracity and precision of the disclosed information.