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

question 7

Multiple Choice

South State Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2015. 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:

Compounded Monthly

A method of calculating interest where the accumulated interest is added to the principal at the end of each month, increasing the subsequent month's interest amount.

Economic Value

A measurement of the benefit provided by a good or service to an individual or society, often quantified in terms of money.

Compounded Semi-Annually

Interest that is calculated and added to the principal twice a year, resulting in increased interest earnings due to the compound effect.

Savings

Money that has been set aside and saved, typically in a bank account, for future use or emergencies.