Table 6-1
Assume the Following Data for Burnette Merchandising for 2019

question 16

Multiple Choice

Table 6-1
Assume the following data for Burnette Merchandising for 2019: $\begin{array} { | l | l | } \hline\text { Beginning inventory } & 10 \text { units at } \$ 7 \text { each } \\\hline \text { March } 18 \text { purchase } & 15 \text { units at } \$ 9 \text { each } \\\hline \text { June } 10 \text { purchase } & 20 \text { units at } \$ 10 \text { each } \\\hline \text { October } 30 \text { purchase } & 12 \text { units at } \$ 11 \text { each } \\\hline\end{array}$ On December 31, a physical count reveals 15 units in ending inventory.
-Refer to Table 6-1. Assume a periodic inventory system. Under the FIFO method, cost of goods sold on the income statement would be:

• A)$294.
• B)$375.
• C)$462.
• D)$420.

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Definitions:

Direct Labor-Hours

The total hours of work directly spent on the production of goods or the delivery of services.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs for a period are more than the actual overhead costs incurred.

Finished Goods

Products that have completed the manufacturing process and are ready for sale to customers.

Journal Entry

A record in accounting that represents a transaction, where each entry includes debits and credits that total an equal amount.