The Following Account Balances at the Beginning of January Were

question 166

Multiple Choice

The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company:

Additional data:
1.Actual manufacturing overhead for January amounted to $62,000.
2.Total direct labor cost for January was $63,000.
3.The predetermined manufacturing overhead rate is based on direct labor cost.The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs.
4.The only job unfinished on January 31 was Job No.151,for which total direct labor charges were $5,200 (800 direct labor hours) and total direct material charges were $14,000.
5.Cost of direct materials placed in production during January totaled $123,000.There were no indirect material requisitions during January.
6.January 31 balance in raw materials inventory was $35,000.
7.Finished goods inventory balance on January 31 was $34,500.
What is the cost of goods manufactured for January?

• A)$274,200
• B)$231,000
• C)$247,720
• D)$204,520

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Definitions:

Note Receivable

A financial asset representing the right to receive a specific amount of money, either on demand or at a specified future date.

Company's Records

Documentation and files that contain important information about a company's operations, financial transactions, and legal obligations.

Outstanding Checks

Checks that have been written and recorded in the issuing entity's accounting system but not yet cashed or cleared by the bank.

Bank Statement

A document issued by a bank detailing all transactions in an account over a specified period, including deposits, withdrawals, and fees.