Stephenson Company's Computer System Recently Crashed, Erasing Much of the Company's

question 3

Multiple Choice

Stephenson Company's computer system recently crashed, erasing much of the company's financial data. The following accounting information was discovered soon afterwards on the CFO's back-up computer data. $\begin{array}{lr}\text { Cost of Goods Sold } & \$ 380,000 \\\text { Work-in-Process Inventory, Beginning } & 30,000 \\\text { Work-in-Process Inventory, Ending } & 40,000 \\\text { Selling and Administrative Expense } & 50,000 \\\text { Finished Goods Inventory, Ending } & 15,000 \\\text { Finished Goods Inventory, Beginning } & ?\\\text { Direct Materials Purchased } & 171,000 \\\text { Factory Overhead Applied } & 112,000 \\\text { Operating Income } & 22,000 \\\text { Direct Materials Inventory, Beginning } & 18,000 \\\text { Direct Materials Inventory, Ending } & 6,000 \\\text { Cost of Goods Manufactured } & 340,000 \\\text { Direct Labor } & 55,000\end{array}$
The CFO of Stephenson Company has asked you to recalculate the following accounts and report to him by week's end.
What should be the amount of direct materials used?

• A)$112,000.
• B)$183,000.
• C)$189,000.
• D)$204,000.

---

Definitions:

Situational Influences

External factors or conditions that affect an individual's behavior, decisions, and feelings in a specific context.

Drivers' Behavior

Pertains to the actions and reactions of drivers while operating a vehicle, often studied to improve road safety and reduce accidents.

Trait Heritability

The degree to which genetic differences among individuals contribute to individual differences in observed behavior or trait manifestation.

Repression

A defense mechanism where an individual unconsciously blocks out painful or unpleasant memories, thoughts, or feelings.