Payton Corporation Provided the Following Information for the Year What Was the Amount of the Cost of Goods Manufactured

question 151

Multiple Choice

Payton Corporation provided the following information for the year: $$\begin{array} { | l | r | } \hline \text { Beginning Balance - Work-in-Process Inventory } & \$ 26,000 \\\hline \text { Ending Balance - Work-in-Process Inventory } & 55,000 \\\hline \text { Beginning Balance - Direct Materials } & 81,000 \\\hline \text { Ending Balance - Direct Materials } & 59,000 \\\hline \text { Purchases - Direct Materials } & 360,000 \\\hline \text { Direct Labor } & 471,000 \\\hline \text { Indirect Labor } & 19,000 \\\hline \text { Depreciation on Factory Plant and Equipment } & 24,000 \\\hline \text { Plant Utilities and Insurance } & 268,000 \\\hline\end{array}$$ What was the amount of the cost of goods manufactured for the year?

• A) $1,363,000
• B) $1,164,000
• C) $1,135,000
• D) $1,193,000

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Definitions:

Customer Base

The group of consumers who repeatedly purchase the goods or services of a business, fundamentally driving its revenue.

Market-Creating Innovation

Innovations that introduce new products or services, creating new demand and potentially new markets.

Lower-Income Segment

A portion of the population or market characterized by lower earnings, often targeted by businesses offering more affordable products or services.

Developing Economies

Countries that are in the process of industrialization, with relatively low per capita income and seeking to improve their economic base.