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

question 36

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 in the finished goods inventory at the beginning of the year?

• A)$15,000.
• B)$45,000.
• C)$55,000.
• D)$61,000.

---

Definitions:

Milgram

A psychologist best known for his controversial experiment on obedience, demonstrating people's willingness to follow authorities' orders, even to the point of harming others.

Psychological Retreat

Involves withdrawing into oneself or into an imagined safe space as a means of coping with stress or trauma.

Stimulus Overload

A condition where an individual is overwhelmed by too much sensory information, often leading to stress or difficulty in focusing.

Depersonalizing Others

Treating individuals as if they do not possess personal qualities or individuality, often leading to a lack of empathy and objectification.