Given the Following Information, Determine the Cost of Goods Manufactured

question 101

Multiple Choice

Given the following information, determine the cost of goods manufactured.
$\begin{array}{|r|r|}\hline \text { Direct labor incurred } & \$ 126,000 \\\hline \text { Manufacturing overhead incurred } & 359,000 \\\hline \text { Direct materials used } & 1,000 \\\hline \text { Finished goods inventory, } 1 / 1 / 2012 & 395,000 \\\hline \text { Finished goods inventory, } 12 / 31 / 2012 & 442,000 \\\hline \text { Work in process inventory, } 1 / 1 / 2012 & 193,000 \\\hline \text { Work in process inventory, } 12 / 31 / 2012 & 218,000 \\\hline\end{array}$

• A) $781,000
• B) $461,000
• C) $731,000
• D) $765,000

---

Definitions:

On-Time Deliveries

A measure of the percentage of orders delivered to customers within the agreed upon time frame, indicating the efficiency and reliability of the company's distribution.

Non-Value-Added

Activities or processes that do not add any functional value to a product or service from the customer's perspective.

Lead Time

The amount of time that elapses between the initiation of a process and its completion, often used in reference to the time it takes for goods to be delivered or services to be provided.

Converting

The process of changing or transforming one form of currency, unit, or data into another.