Ogleby Inc During 2013, Ogleby Purchased $840,000 of Raw Materials, Incurred Direct

question 131

Multiple Choice

Ogleby Inc.'s accounting records reflect the following inventories: $\begin{array}{lrr}&\text { Dec. 31, } 2012&\text { Dec. 31, } 2013\\\text { Raw materials inventory } & \$ 120,000 & \$ 96,000 \\\text { Work in process inventory } & 156,000 & 174,000 \\\text { Finished qoods inventory } & 150,000 & 138,000\end{array}$ During 2013, Ogleby purchased $840,000 of raw materials, incurred direct labor costs of $150,000, and incurred manufacturing overhead totaling $192,000.
- How much is total manufacturing costs incurred during 2013 for Ogleby?

• A)$1,188,000
• B)$1,206,000
• C)$1,182,000
• D)$1,200,000

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Definitions:

Photoautotroph

An organism that obtains energy from light and synthesizes organic compounds from inorganic raw materials; includes plants, algae, and some bacteria. Compare with photoheterotroph, chemoautotroph, and chemoheterotroph.

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Chemical substances derived from the fungus Claviceps purpurea (ergot), which infects cereal grains and possesses psychoactive and medicinal properties, historically involved in the cause of ergotism or "St. Anthony's fire."