Ting Company Started the Accounting Period with the Following Beginning

question 122

Multiple Choice

Ting Company started the accounting period with the following beginning balances: Raw Materials Inventory,$21,000;Work in Process Inventory,$45,000;and Finished Goods Inventory,$10,000.During the accounting period,the company purchased $30,000 of raw materials and ended the period with $8,000 in raw material inventory.Direct labor costs for the period were $60,000 and $63,000 of manufacturing overhead costs was allocated to work in process.There was no over- or underapplied overhead.Ending work in process was $41,000 and ending finished goods was $17,500.Goods were sold during the period for $162,500.The amount of cost of goods manufactured (i.e. ,amount transferred from work in process to finished goods) would be:

• A) $117,500.
• B) $170,000.
• C) $221,000.
• D) $166,000.

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Definitions:

Supply Curves

Graphical representations showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing to offer for sale.

Price Floors

A government- or authority-imposed minimum price that sellers must charge for a good or service, essentially preventing prices from falling below this set level.

Ceiling Prices

Maximum prices set by the government on certain goods and services to prevent excessive pricing during shortages or inflationary periods.

Rationing Function

The ability of market prices to distribute scarce goods and services among consumers based on willingness and ability to pay.