Inventory Balances for Rude,Inc During April,purchases of Direct Materials Were $18,000

question 89

Multiple Choice

Inventory balances for Rude,Inc.,in April are as follows: $$\begin{array} { l c c } & \text { April } 1 & \text { April 30 } \\\text { Materials } &\$ 9,000 & \$7,000 \\\text { Work in process } & 16,000 & 12,400 \\\text { Finished goods } & 36,000 & 30,000\end{array}$$ During April,purchases of direct materials were $18,000.Direct labour and factory overhead costs were $20,000 and $28,000,respectively.
What was the cost of goods manufactured in April?

• A)$68,000
• B)$71,600
• C)$74,000
• D)$77,600

---

Definitions:

Cash Conversion Cycle

A metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Payables Deferral Period

The amount of time a company takes to pay off its suppliers after receiving goods or services, affecting its cash flow.

Daily Sales

The total revenue or amount of goods and services sold by a business within a single day.

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures needed to maintain or expand the asset base.