Following Information for the Year 2012 -
Please Refer to the T-Accounts Below Which Show

question 97

Multiple Choice

following information for the year 2012:
$$\begin{array} { l r } \text { Beginning balance-work in process inventory } & \$ 12,000 \\\text { Ending balance-work in process inventory } & \$ 28,000 \\\text { Beginning balance-direct materials inventory } & \$ 42,000 \\\text { Ending balance-direct materials inventory } & \$ 30,000 \\\text { Purchases-direct materials } & \$ 180,000 \\\text { Direct labor } & \$ 235,000 \\\text { Indirect materials } & \$ 23,500 \\\text { Indirect labor } & \$ 9,500 \\\text { Depreciation on factory plant \& equipment } & \$ 12,000 \\\text { Plant utilities \& insurance } & \$ 135,000\end{array}$$
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Please refer to the T-accounts below which show the beginning balances for the year.
Use the T-accounts to record the transactions for the year. What is the ending balance in the Direct materials account?

• A) $108,000
• B) $12,000
• C) $222,000
• D) $30,000

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Definitions:

Measures

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Supplier Lead Time

The time duration between when an order is placed with a supplier and when the ordered goods are actually received, critical for inventory management and planning.

Safety Inventory

Extra stock kept on hand to buffer against potential supply chain disruptions, ensuring that demand can be met without delay.

Golgi Apparatus

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