Figure 14_03
Use the Following Information for Acme, Inc -What Is the Total Amount of Manufacturing Costs Added to of December

question 183

Multiple Choice

Figure 14_03
Use the following information for Acme, Inc., as of December 31
$$\begin{array} { l r } \text { Administrative salaries } & \$ 32,000 \\\text { Depreciation of factory equipment } & 25,000 \\\text { Depreciation of delivery vehicles } & 9,000 \\\text { Direct labor } & 68,000 \\\text { Factory supplies used } & 12,000 \\\text { Finished goods inventory, January 1 } & 57,000 \\\text { Finished goods inventory, December } 31 & 68,000 \\\text { Factory insurance } & 15,500 \\\text { Interest expense } & 12,000 \\\text { Factory utilities } & 14,000 \\\text { Factory maintenance } & 7,500 \\\text { Raw materials inventory, January 1 } & 8,000 \\\text { Raw materials inventory, December 31 } & 4,000 \\\text { Raw material purchases } & 125,000 \\\text { Rent on factory building } & 25,000 \\\text { Repairs of factory equipment } & 11,500 \\\text { Sales commissions } & 37,500 \\\text { Goods in process inventory, January } 1 & 3,500 \\\text { Goods in process inventory, December } 31 & 2,000\end{array}$$

-What is the total amount of manufacturing costs added to Goods In Process?

• A) $393,000.
• B) $325,000.
• C) $389,500.
• D) $397,000.
• E) $307,500.

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Definitions:

Rent Controls

A restriction set by authorities on how much landlords can demand for renting out houses or apartments.

Long Run

An economic term for a timeframe in which all factors of production and costs are variable, allowing for full adjustment to changes.

Nominal Growth Rate

The rate at which an economy or financial metric grows over time, including inflation, without adjusting for the latter.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, reflecting the purchasing power of currency.