Use the Information Below to Answer the Following Question(s)

question 128

Multiple Choice

Use the information below to answer the following question(s) .Samson Inc.expects to sell 10,000 barbells for $18.00 each.Direct materials costs are $5.00, direct manufacturing labour is $6.00, and manufacturing overhead is $2.50 per barbell.Each barbell requires 6 kilograms (kg) of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started..Each barbell requires one-quarter hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.Marketing costs are $2.00 per barbell.The following inventory levels are expected to apply to 2019:

-On the 2019 budgeted income statement, what amount will be reported for cost of goods sold?

• A)$132,975
• B)$135,675
• C)$134,325
• D)$135,000
• E)$155,000

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Definitions:

M'Naghten Rule

A legal standard used to determine whether a defendant was insane at the time they committed a crime, focusing on whether they understood the nature of their act or knew right from wrong.

Irresistible Impulse Test

A legal test for insanity that holds people to be insane at the time they committed a crime if they were driven to do so by an uncontrollable “fit of passion.”

Durham Test

A legal test for insanity that holds people to be insane at the time they committed a crime if their act was the result of a mental disorder or defect.

American Law Institute Test

A legal test for insanity that holds people to be insane at the time of committing a crime if, because of a mental disorder, they did not know right from wrong or could not resist an uncontrollable impulse to act.