Assume the Following Information: Direct Materials Used

question 9

Multiple Choice

Assume the following information: Direct materials used
£ 90,000
Direct labour
130,000
Factory overhead
150,000
Beginning work-in-progress inventory
15,000
Beginning finished goods inventory
20,000
Ending work-in-progress inventory
42,000
Selling and administrative expenses
37,500
What was the cost of goods manufactured during the year?

• A) £370,000
• B) £365,000
• C) £343,000
• D) £333,000

---

Definitions:

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good affects the overall cost of production.

Joint Monthly Profit

The combined profit earned by two or more partners or businesses in a single month.

Cartel

An organization of sellers designed to coordinate supply and price decisions so that the joint profits of the members will be maximized. A cartel will seek to create a monopoly in the market for its product.

Monopolist

A single seller in a market who has significant control over the price and supply of a product or service.