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:

Eardrum

A thin membrane that separates the external ear from the middle ear, vibrating in response to sound waves.

Tympanic Membrane

A thin, cone-shaped membrane that separates the external ear from the middle ear and vibrates in response to sound waves.

External Acoustic Meatus

The external passage leading into the ear, facilitating the travel of sound waves from the outside to the eardrum.

Tympanic Cavity

The air-filled space in the middle ear that contains the auditory ossicles, important for sound transmission.