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

question 46

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 total manufacturing cost?

• A)$340,000.
• B)$350,000.
• C)$380,000.
• D)$395,000.

---

Definitions:

Total Product

The overall quantity of output produced by a firm from a given quantity of inputs, in the context of production theory.

Marginal Product

Marginal product refers to the additional output generated by employing one more unit of a specific factor of production, such as labor or capital.

Marginal Product

The increase in output resulting from a one-unit increase in the quantity of a particular input, holding all other inputs constant.

Total Product

The total output of goods or services produced by a firm or industry within a specified period.