The Richards Company Manufactures a Single Product The Company's Cost of Raw Materials Used, Cost of Goods

question 172

Multiple Choice

The Richards Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Richards Company follows: $$\begin{array} { l r } \text { Beginging raw materials inventory } & \$ 10,000 \\\text { Ending raw materials inventory } & 12,000 \\\text { Raw material purchases } & 90,000 \\\text { Beginging work in process inventory } & 40,000 \\\text { Ending work in process inventory } & 25,000\end{array}$$ $$\begin{array} { l r } \text { Direct labor } & 130,000 \\\text { Total factory overhead } & 60,000 \\\text { Begining finithed goods inventory } & 55,000 \\\text { Ending finished goods inventory } & 45,000\end{array}$$ The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:

• A) Cost of Materials Used = $88,000
• Cost of Goods Manufactured = $293,000
• Cost of Goods Sold = $303,000
• B) Cost of Materials Used = $92,000
• Cost of Goods Manufactured = $263,000
• Cost of Goods Sold = $293,000
• C) Cost of Materials Used = $92,000
• Cost of Goods Manufactured = $293,000
• Cost of Goods Sold = $303,000
• D) Cost of Materials Used = $88,000
• Cost of Goods Manufactured = $263,000
• Cost of Goods Sold = $283,000
• E) Cost of Materials Used = $90,000
• Cost of Goods Manufactured = $293,000
• Cost of Goods Sold = $283,000

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Definitions:

Myelin Sheath

A fatty layer that surrounds the axons of some nerve cells, serving as insulation and increasing the speed at which nerve impulses are conducted.

Axons

Neuronal fibers that transmit electrical signals from the neuron's cell body to other cells, playing a critical role in the central nervous system's function.

Myelinated Axons

Axons that are covered with myelin, a fatty substance that speeds up the transmission of nerve impulses.

Action Potential

A rapid rise and subsequent fall in voltage or electrical charge across a cellular membrane, typical of neurons and muscle cells.