Assume the Following Information Pertaining to Moonbeam Company $\text { Costs incurred during the period are as follows: }$

question 20

Multiple Choice

Assume the following information pertaining to Moonbeam Company: $\begin{array}{lrr} & \text { Beginning } & \text { Ending } \\\text { Finished goods inventory } & \$ 130,000 & \$ 124,000 \\\text { Work in process inventory } & 85,000 & 104,000 \\\text { Direct materials } & 117,000 & 130,000\end{array}$

$\text { Costs incurred during the period are as follows: }$
$\begin{array}{lr}\text { Total manufacturing costs } & \$ 896,000 \\\text { Factory overhead } & 199,000 \\\text { Direct materials used } & 156,000\end{array}$ Materials purchases are calculated to be:

• A)$143,000.
• B)$156,000.
• C)$91,000.
• D)$169,000.
• E)$140,000.

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Definitions:

Capacities Known

A situation where the maximum output levels for resources or processes are clearly identified and measured, facilitating planning and optimization.

Set-Up Times

refers to the period required to prepare equipment, machines, or systems for a manufacturing process or operation, aiming to minimize it for efficiency.