Use the Following Information to Compute the Cost of Goods

question 133

Multiple Choice

Use the following information to compute the cost of goods manufactured. Assume that all raw materials used were traceable to specific units of product. $$\begin{array} { | l | r | } \hline \text { Beginning raw materials } & \$ 5,500 \\\hline \text { Ending raw materials } & 4,000 \\\hline \text { Direct labor } & 12,250 \\\hline \text { Raw material purchases } & 7,400 \\\hline \text { Depreciation on factory equipment } & 6,500 \\\hline \text { Factory repairs and maintenance } & 3,300 \\\hline \text { Beginning finished goods inventory } & 10,200 \\\hline \text { Ending finished goods inventory } & 8,900 \\\hline \text { Beginning work in process inventory } & 5,700 \\\hline \text { Ending work in process inventory } & 6,300 \\\hline\end{array}$$

• A) $36,650.
• B) $30,950.
• C) $30,650.
• D) $30,350.
• E) $31,650.

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Definitions:

MUx

Marginal Utility with respect to a good or service x, representing the additional satisfaction gained from consuming one more unit of it.

Px/Py

A ratio indicating the price of one good (Px) relative to the price of another good (Py), used in economics to analyze consumer choice and purchasing power.

Indifference Curves

Graphical representations used in microeconomics to show combinations of two goods that give the consumer the same level of satisfaction.

Concave

A shape or curve that is rounded inward, like the inside of a circle or sphere, often used in the context of mathematical functions or geometric figures.