Current Information for the Stellar Corporation Follows Stellar Corporation's Cost of Goods Manufactured for the Year Is

question 64

Multiple Choice

Current information for the Stellar Corporation follows: $$\begin{array} { | l | r | } \hline \text { Beginning work in process inventory } & \$ 17,900 \\\hline \text { Ending work in process inventory } & 19,300 \\\hline \text { Direct materials } & 147,000 \\\hline \text { Direct labor } & 85,000 \\\hline \text { Total factory overhead } & 63,100\\\hline \end{array}$$ Stellar Corporation's Cost of Goods Manufactured for the year is:

• A) $295,100.
• B) $296,500.
• C) $313,000.
• D) $275,800.
• E) $293,700.

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Definitions:

Accounting Equation

A fundamental principle in accounting that states that assets equal liabilities plus equity (Assets = Liabilities + Equity), serving as the foundation for the balance sheet.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Short-term Obligations

Financial liabilities that are due for payment within one year.

Normal Balance

The side of an account (debit or credit) that is expected to have a higher balance based on the accounting equation.