You Are Given the Following Data for January Which of the Following Is the Cost of Goods Manufactured

question 5

Multiple Choice

You are given the following data for January:
$\begin{array}{|l|l|}\hline \text { Direct materials } & \$ 38,000 \\\hline \text { Direct labour } & \$ 24,000 \\\hline \text { Manufacturing overhead } & \$ 17,000 \\\hline \text { Beginning work in process inventory } & \$ 10,000 \\\hline \text { Ending work in process inventory } & \$ 11,000 \\\hline\end{array}$
Which of the following is the cost of goods manufactured?

• A) $89,000.
• B) $78,000.
• C) $79,000.
• D) $80,000.

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Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price in a specific time period.

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied, commonly referred to as the market-clearing price.

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Equilibrium Prices

The price at which the quantity of a good supplied equals the quantity demanded, balancing the market and clearing any surplus or shortage.