At the Beginning of 2015, Conway Manufacturing Had the Following

question 9

Multiple Choice

At the beginning of 2015, Conway Manufacturing had the following account balances: Following additional details are provided for the year:
$$\begin{array} { | l | r | } \hline \text { Direct materials placed in production } & \$ 80,000 \\\hline \text { Direct labor incurred } & 190,000 \\\hline \text { Manufacturing overhead incurred } & 300,000 \\\hline \text { Manufacturing overhead allocated to production } & 295,000 \\\hline \text { Cost of jobs completed and transferred } & 500,000 \\\hline \text { Total revenue } & 750,000 \\\hline \text { Cost of goods sold } & 440,000 \\\hline\end{array}$$ Calculate the gross profit will Conway report for the year 2015.

• A) $315,000
• B) $305,000
• C) $310,000
• D) $345,000

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Definitions:

Public Good

A product or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Nonexcludable

A characteristic of a good where it is not possible to prevent individuals from accessing or consuming the good.

Nonrival Consumption

A situation where one individual's consumption of a good does not reduce the amount available for consumption by others.

Private Goods

Goods that are excludable and rivalrous in consumption, meaning they can only be used by one person at a time.