Arturo Manufacturing Company Provided the Following Information for the Year

question 52

Multiple Choice

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

• A) $28,000
• B) $42,000
• C) $22,000
• D) $91,500

---

Definitions:

Future Cash Flows

Estimated streams of future financial income or expenditure, related to investments, projects, or business operations.

Rate of Return

A measure of the profitability of an investment, expressed as a percentage of the original investment.

Present Value

The present valuation of money expected in the future or cash inflow sequences, with adjustments for a predetermined rate of return.

Security's Value

The market worth or price at which a financial security, such as a bond or stock, can be bought or sold.