Ogleby Inc During 2020, Ogleby Purchased $980,000 of Raw Materials, Incurred Direct

question 132

Multiple Choice

Ogleby Inc.'s accounting records reflect the following inventories: $\begin{array}{lrr}&\text { Dec. } 31,2019&\text { Dec. } 31,2020\\\text { Raw materials inventory } & \$ 120,000 & \$ 96,000 \\\text { Work in process inventory } & 156,000 & 174,000\\\text { Finished goods inventory }&150,000&138,000\end{array}$ During 2020, Ogleby purchased $980,000 of raw materials, incurred direct labor costs of $175,000, and incurred manufacturing overhead totaling $224,000. How much would Ogleby Manufacturing report as cost of goods manufactured for 2020?

• A) $1,229,000
• B) $1,397,000
• C) $1,391,000
• D) $1,385,000

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Definitions:

Uncovered Call

An uncovered call is an options strategy where the seller sells call options without owning the underlying securities, exposing the seller to unlimited risk.

Strike Price

The price at which a derivative contract can be exercised, specifically referring to the price at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Listed Options

Contracts traded on a stock exchange that give buyers the right, but not the obligation, to buy or sell a security at a specified price within a certain time period.

Post Margins

The practice of depositing collateral to cover potential losses in trading accounts, especially in futures and options markets.