Following Information for the Year 2012 - What Was the Amount of the Cost of }

question 96

Multiple Choice

following information for the year 2012:
$$\begin{array} { l r } \text { Beginning balance-work in process inventory } & \$ 12,000 \\\text { Ending balance-work in process inventory } & \$ 28,000 \\\text { Beginning balance-direct materials inventory } & \$ 42,000 \\\text { Ending balance-direct materials inventory } & \$ 30,000 \\\text { Purchases-direct materials } & \$ 180,000 \\\text { Direct labor } & \$ 235,000 \\\text { Indirect materials } & \$ 23,500 \\\text { Indirect labor } & \$ 9,500 \\\text { Depreciation on factory plant \& equipment } & \$ 12,000 \\\text { Plant utilities \& insurance } & \$ 135,000\end{array}$$
- What was the amount of the cost of goods manufactured for the year?

• A) $591,000
• B) $579,000
• C) $619,000
• D) $607,000

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Definitions:

MRC

Marginal Revenue Cost, an economics term referring to the cost added by producing one additional unit of a product or service.

Technological Innovations

The introduction of new technologies or methods that improve products, processes, or services, often contributing to increased efficiency or value.

Labor Market

The supply and demand for labor, where employers seek to hire workers and workers look for employment.

Capital

Financial assets or the financial value of assets, such as cash and buildings, used by a business to produce goods and services.