South State Company Used $71,000 of Direct Materials and Incurred

question 72

Multiple Choice

South State Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2012. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100; maintenance of $4,500; repairs of $1,800; depreciation of $7,900; and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.
How much is the cost of goods manufactured?

• A) $124,700
• B) $130,200
• C) $137,700
• D) $132,200

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Definitions:

Negative Punishment

A behavioral modification technique involving the removal of a desirable stimulus to decrease the likelihood of a behavior recurring.

Negative Reinforcement

A behavior reinforcement strategy where the removal of an undesirable or aversive stimulus strengthens or increases the likelihood of a behavior.

Positive Reinforcement

The process of increasing the probability of a behavior by following it with a desirable event or outcome.

Likelihood

The probability or chance of an event occurring.