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

question 18

Multiple Choice

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

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

• A)$890,000.
• B)$896,000.
• C)$883,000.
• D)$877,000.
• E)$870,000.

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Definitions:

Retailer

A business entity that sells goods or merchandise directly to consumers.

Collection Process

Procedures followed by a business to collect money owed by customers.

Issuer

The entity responsible for providing a financial instrument or security, such as bonds, shares, or notes, to the market or the public.

Retailer

A business entity that sells goods and services directly to consumers, acting as the final link in the supply chain between manufacturers and end-users.