Tranham, Inc How Much Will Tranham Report as Cost of Goods Sold

question 12

Multiple Choice

Tranham, Inc.uses a job-order costing system.It reported the following amounts for March $\begin{array}{lrlr}\text { Work in process, March 1 } & \$ 38,000 & \text { Finished goods, March 1 } & \$ 14,000 \\\text { Work in process, March 31 } & 35,000 & \text { Finished goods, March 31 } & 17,500 \\\text { Cost of goods manufactured } & 169,000 & \text { Raw materials, March 1 } & 12,300 \\\text { Direct labor used } & 64,000 & \text { Raw materials, March 31 } & 12,000 \\\text { Selling costs incurred } & 32,000 & \text { Direct materials used } & 63,000\end{array}$ How much will Tranham report as cost of goods sold for the month of March?

• A)$169,000
• B)$172,000
• C)$183,000
• D)$165,500

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Definitions:

Upstream

In supply chain and business contexts, referring to the processes or activities that occur at the beginning of the product lifecycle, including raw material extraction and sourcing.

Downstream

Refers to the stages in the production process where processed materials are transformed into final products, or in distribution and supply chain models, the points closer to the end consumer.

Distribution

The process of making a product or service available for the consumer or business user that needs it, through direct or indirect means.

Enterprise Resource Planning (ERP)

Integrated management of main business processes, often in real-time and mediated by software and technology.