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:

Purchase Order

An official document issued by a buyer committing to pay the seller for the sale of specific products or services to be delivered in the future.

Credit Memorandum

A document issued by a seller indicating a reduction in the amount that a buyer owes, often due to a return or refund.

F.O.B. Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the goods and their transportation costs once they leave the seller's premises.

Purchaser

An individual or entity that buys goods or services for personal use, resale, or production.