Use the Following Information to Compute the Cost of Goods

question 153

Multiple Choice

Use the following information to compute the cost of goods manufactured. Assume that all raw materials used were traceable to specific units of product. $\begin{array} { l | r } \text { Beginning raw materials } & \$ 5,500 \\\hline \text { Ending raw materials } & 4,000 \\\hline \text { Direct labor } & 12,250 \\\hline \text { Raw material purchases } & 7,400 \\\hline \text { Depreciation on factory equipment } & 6,500 \\\hline \text { Factory repairs and maintenance } & 3,300 \\\hline \text { Beginning finished goods inventory } & 10,200 \\\hline \text { Ending finished goods inventory } & 8,900 \\\hline \text { Beginning work in process inventory } & 5,700 \\\hline \text { Ending work in process inventory } & 6,300\end{array}$

• A) $36,650.
• B) $30,350.
• C) $30,650.
• D) $30,950.
• E) $31,650.

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Definitions:

Employee Involvement

A workplace strategy aiming to engage employees in decision-making processes and operations to improve satisfaction and productivity.

Supplier Partnering

A close relationship between a buyer and supplier aimed at long-term mutual benefits and performance improvements.

Nonfinancial Information

Data that doesn't have a monetary value but is relevant for understanding a company's performance or condition, such as employee satisfaction or customer loyalty.

Variance Analysis

The process of investigating the differences between actual financial performance and budgeted expectations, identifying causes of variance.