Given the Following Information, Determine the Cost of Goods Sold

question 237

Multiple Choice

Given the following information, determine the cost of goods sold. $$\begin{array} { | l | r | } \hline \text { Direct Labor Incurred } & \$ 61,000 \\\hline \text { Manufacturing Overhead Incurred } & 176,500 \\\hline \text { Direct Materials Used } & 154,000 \\\hline \text { Finished Goods Inventory, Jan. 1 } & 198,000 \\\hline \text { Finished Goods Inventory, Dec. 31 } & 98,500 \\\hline \text { Work-in-Process Inventory, Jan. 1 } & 222,000 \\\hline \text { Work-in-Process Inventory, Dec. 31 } & 109,000 \\\hline\end{array}$$

• A) $504,500
• B) $613,500
• C) $604,000
• D) $296,500

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Definitions:

North American Management

A management approach typically observed in organizations located in North America, characterized by its emphasis on decentralization, flexibility, and individual initiative.

Autonomy and Entrepreneurship

This refers to the capacity of individuals or teams to make independent decisions and pursue innovative ventures within the constraints of an organization.

Closeness of Supervision

The degree to which managerial oversight and control are applied in the oversight of employee tasks and responsibilities.

Productivity Through People

A management philosophy emphasizing the empowerment and involvement of employees in decision-making processes to improve performance and productivity.