Inventory Balances for the James Enterprises in February Are as Follows

question 216

Multiple Choice

Inventory balances for the James Enterprises in February are as follows:
$\begin{array}{lrr}&\text { February } 1&\text { February } 28\\\text { Raw materials } & \$ 27,000 & \$ 21,000 \\\text { Work in process } & 48,000 & 37,200 \\\text { Finished goods } & 108,000 & 90,000\end{array}$ During February,purchases of direct materials were $36,000.Direct labour and factory overhead costs were $60,000 and $84,000,respectively.
-Refer to the figure.What is the cost of goods manufactured?

• A)$180,000
• B)$186,000
• C)$194,000
• D)$196,800

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Definitions:

Off-Price Stores

Retail outlets that sell branded goods at lower prices than conventional retail stores, usually by buying overstocked or out-of-season items.

Everyday Value Retailers

Stores that offer low prices on their merchandise on a regular basis, focusing on providing consistent value to consumers.

Central Business District

The commercial and business center of a city, characterized by a concentration of retail and office buildings.

Community's Downtown

A central business district or the main business and commercial area of a town or city where the community often gathers for shopping, entertainment, and social activities.