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

question 38

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 available for use?

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

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Definitions:

Cogito Ergo Sum

A philosophical statement by René Descartes, which translates to "I think, therefore I am," used to demonstrate the existence of the self and consciousness.

Carpe Diem

A Latin aphorism usually translated as "seize the day," encouraging individuals to make the most of the present moment without concern for the future.

Redistribution Of Income

The transfer of income from certain individuals or groups to others through mechanisms such as taxation, welfare, and government policies.

Equity

The concept of fairness and justice within the processes, distribution, and outcomes in society or specific situations.