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:

Multi-step Income Statement

An income statement that segregates total revenues and expenses into operating and non-operating categories, providing a detailed view of a company's financial performance.

Bond Discount

The disparity in value when a bond's selling price is beneath its designated face value.

Semiannual Interest

Interest that is computed and disbursed semi-annually, commonly associated with bonds and loans.

Straight-line Method

An approach to calculate depreciation or amortization by equally dividing the asset's expense over its useful life.