Information from the Records of the Cain Corporation for August

question 228

Multiple Choice

Information from the records of the Cain Corporation for August was as follows:
$\begin{array}{llr} \text {Sales } &\$1,230,000\\ \text { Selling and administrative expenses } &210,000\\ \text { Direct materials used } &264,000\\ \text { Direct labour } &300,000\\ \text {Factory overhead* } &405,000\\\end{array}$
*variable overhead is $205,000,fixed overhead is $200,000
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Inventories }$
$\begin{array}{lrr}& \underline{\text {August 1}}& \underline{\text {August 31}}\\\text { Direct materials } & \$ 36,000 & \$ 42,000 \\\text { Work in process } & 75,000 & 84,000 \\\text { Finished goods } & 69,000 & 57,000\end{array}$

-Refer to the figure.What is the total product cost?

• A)$615,000
• B)$764,000
• C)$969,000
• D)$1,179,000

---

Definitions:

Repair Defects

The process of identifying and correcting flaws or issues in products or systems.

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on businesses to fund state workforce agencies.

Employer Only

A term that may refer to expenses or contributions that are solely the responsibility of the employer and not shared with employees.

Contingent Liability

A potential financial obligation that may arise in the future, depending on the outcome of a specific event.