A Company Used $35,000 of Direct Materials, Incurred $73,000 in Direct

question 43

Multiple Choice

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in manufacturing overhead costs during the period. If beginning and ending Work-in-Process Inventories were $28,000 and $21,000 respectively, what is the cost of goods manufactured?

• A)$250,000
• B)$229,000
• C)$215,000
• D)$222,000

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Definitions:

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders as dividends.

Net Sales

This is the revenue from all sales of goods and services less returns, allowances for damaged or missing goods, and discounts.

Cost of Goods SOLD

Expenses directly associated with the creation of goods a company sells, including costs for materials and labor.

Operating Expenses

Recurring expenses related to the central operations of a business, such as rent, utilities, and payroll, excluding costs of goods sold.