The Information Below Has Been Taken from the Cost Records

question 111

Multiple Choice

The information below has been taken from the cost records of Tercel Company for the past year:
$\begin{array} {| l | r | } \hline \begin{array} { l } \text { Raw materials used in production (all } \\\text { direct) }\end{array} & \$ 326,000 \\\hline \begin{array} { l } \text { Total manufacturing costs charged to jobs } \\\text { during the year (includes raw materials, } \\\text { direct labour, and manufacturing overhead } \\\text { applied at the rate of } 60 \% \text { of direct labour } \\\text { cost) }\end{array} & \$ 686,000 \\\hline \begin{array} { l } \text { Cost of goods available for sales } \\\end{array} & \$ 826,000 \\\hline \begin{array} { l } \text { Selling and administrative expenses }\end{array} &\$25,000\\\hline\end{array}$
$\begin{array}{|l|r|r|}\hline & \text { Inventories } & \\\hline & \text { Beginning } & \text { Ending } \\\hline \text { Raw materials (all direct) } & \$ 75,000 & \$ 85,000 \\\hline \text { Work in process } & 80,000 & 30,000 \\\hline \text { Finished goods } & 90,000 & 110,000 \\\hline\end{array}$


-What was the cost of goods sold for the year (before disposition of any under- or overapplied overhead) ?

• A) $736,000.
• B) $716,000.
• C) $691,000.
• D) $801,000.

---

Definitions:

Common Sense

A pamphlet written by Thomas Paine in 1776 advocating independence from Great Britain to people in the Thirteen Colonies, emphasizing the need for common sense judgement.

Thomas Paine

An influential English-born American writer and political activist during the 18th century, best known for his powerful and persuasive pamphlets advocating independence from Great Britain.

Poor Background

Describes individuals or communities that originate from low socio-economic conditions, often facing financial and educational disadvantages.

American Victory

A term that could refer to any significant success or triumph by the United States in various contexts, such as wars, sports, or international competitions.