Use the Following Data to Determine the Cost of Goods

question 15

Multiple Choice

Use the following data to determine the cost of goods manufactured: $$\begin{array} { | l | r | } \hline \text { Beginning finished goods inventory } & \$ 10,800 \\\hline \text { Direct labor } & 30,600 \\\hline \text { Beginning work in process inventory } & 7,200 \\\hline \text { General and administrative expenses } & 13,500 \\\hline \text { Direct materials used } & 40,500 \\\hline \text { Ending work in process inventory } & 9,000 \\\hline \text { Indirect labor } & 6,300 \\\text { Ending finished goods inventory } & 9,500 \\\hline \text { Indirect materials } & 13,500 \\\hline \text { Depreciation-factory equipment } & 7,500 \\\hline\end{array}$$

• A) $102,000.
• B) $110,100.
• C) $96,600.
• D) $113,700.
• E) $100,200.

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Definitions:

Noncurrent Assets

Long-term assets that are not expected to be converted into cash within a year, such as property, plant, and equipment.

Stockholders' Equity

The ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.

Debt-To-Equity Ratio

A ratio that demonstrates the mix of shareholder equity versus debt financing employed to fund a company's assets.

Long-Term Liabilities

Financial obligations of a company that are due beyond one year, including bonds payable, long-term loans, and lease obligations.