The Information Below Has Been Taken from the Cost Records

question 51

Multiple Choice

The information below has been taken from the cost records of Tercel Company for the past year:
$\begin{array} {| l | r | } \hline \begin{array} { l } \text { Raw materials used in production (all } \\\text { direct) }\end{array} & \$ 326,000 \\\hline \begin{array} { l } \text { Total manufacturing costs charged to jobs } \\\text { during the year (includes raw materials, } \\\text { direct labour, and manufacturing overhead } \\\text { applied at the rate of } 60 \% \text { of direct labour } \\\text { cost) }\end{array} & \$ 686,000 \\\hline \begin{array} { l } \text { Cost of goods available for sales } \\\end{array} & \$ 826,000 \\\hline \begin{array} { l } \text { Selling and administrative expenses }\end{array} &\$25,000\\\hline\end{array}$
$\begin{array}{|l|r|r|}\hline & \text { Inventories } & \\\hline & \text { Beginning } & \text { Ending } \\\hline \text { Raw materials (all direct) } & \$ 75,000 & \$ 85,000 \\\hline \text { Work in process } & 80,000 & 30,000 \\\hline \text { Finished goods } & 90,000 & 110,000 \\\hline\end{array}$


-What was the cost of goods manufactured during the year?

• A) $636,000.
• B) $766,000.
• C) $736,000.
• D) $716,000.

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Definitions:

Internal Consistency

A measure of the reliability of a test or scale, indicating how well the various items measure the same concept or construct.

Licensure Exam

A standardized test that individuals must pass in order to be legally recognized as a professional in certain fields.

Median

The middle value in a data set, which divides it into two equal halves, with an equal number of values both above and below it.

Range

The difference between the highest and lowest scores in a data set, used as a measure of variability.