Benson Inc During 2013, Benson Purchased $1,160,000 of Raw Materials, Incurred Direct

question 111

Multiple Choice

Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c } & \text { Dec. 31,2012 } & \text { Dec. 31,2013 } \\\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \\\text { Work in process inventory } & 104,000 & 116,000 \\\text { Finished goods inventory } & 100,000 & 92,000\end{array}$$ During 2013, Benson purchased $1,160,000 of raw materials, incurred direct labor costs of $200,000, and incurred manufacturing overhead totaling $128,000.
- Assume Benson's cost of goods manufactured for 2013 amounted to $1,360,000.How much would it report as cost of goods sold for the year?

• A)$1,368,000
• B)$1,400,000
• C)$1,460,000
• D)$1,352,000

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Definitions:

AC Generator

An alternator in a vehicle that converts mechanical energy into alternating current electricity to power electrical systems.

Diodes

Semiconductor devices that allow current to flow in one direction, often used in electronics to rectify, switch, or modulate signals.

Direct Current

An electric current that flows in one direction only, used in many electronic devices and battery-powered systems.

Alternating Current

Electrical current that periodically reverses direction, commonly used in households and industries for power distribution.