Ogleby Inc During 2022 Ogleby Purchased $980000 of Raw Materials Incurred Direct

question 79

Multiple Choice

Ogleby Inc.'s accounting records reflect the following inventories: $\begin{array}{lcc} & \text { Dec. 31,2021 } & \text { Dec. 31,2022 } \\\hline \text { Raw materials inventory } & \$ 120,000 & \$ 96,000 \\\text { Winished qoods inventory } & 156,000 & 174,000 \\\text { Finocess inventory } & 150,000 & 138,000\end{array}$ During 2022 Ogleby purchased $980000 of raw materials incurred direct labor costs of $175000 and incurred manufacturing overhead totaling $224000. How much is total manufacturing costs incurred during 2022 for Ogleby?

• A)$1385000
• B)$1403000
• C)$1379000
• D)$1415000

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Definitions:

Benefits

The advantages or positive outcomes gained from a product or action.

Sunk Cost

Costs that have already been incurred and cannot be recovered, which should not affect future investment or business decisions.

Outsourcing

The practice of contracting out certain business functions or processes to a third-party provider.

Fixed Cost

Fixed cost refers to expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.