Dolan Company's Accounting Records Reflect the Following Inventories During 2013, $600,000 of Raw Materials Were Purchased, Direct Labor

question 128

Multiple Choice

Dolan Company's accounting records reflect the following inventories: $\begin{array}{lrr}&\text { Dec. } 31,2013&\text { Dec. } 31,2012\\\text { Raw materials inventory } & \$ 310,000 & \$ 260,000 \\\text { Work in process inventory } & 300,000 & 160,000 \\\text { Finished goods inventory } & 190,000 & 150,000\end{array}$ During 2013, $600,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
- The total raw materials available for use during 2013 for Dolan Company is

• A)$910,000.
• B)$460,000.
• C)$550,000.
• D)$860,000.

---

Definitions:

Capital Structure

The mix of debt and equity financing used by a company to finance its overall operations and growth.

Expected State

Refers to the predicted condition or status of an entity or economy based on current trends or models.

Unlever

The process of reducing or eliminating leverage (debt) within a company's capital structure.

Lend Out

The act of providing funds to another party with the expectation of being repaid, usually with interest.