Arturo Manufacturing, Inc How Much Is the Cost of Goods Manufactured?
A) $838,170

question 243

Multiple Choice

Arturo Manufacturing, Inc. provided the following information for the year: $$\begin{array} { | l | r } \hline \text { Beginning Balance - Work-in-Process Inventory } & \$ 150,000 \\\hline \text { Ending Balance - Work-in-Process Inventory } & 62,500 \\\hline \text { Beginning Balance - Direct Materials } & 269,000 \\\hline \text { Ending Balance - Direct Materials } & 53,700 \\\hline \text { Purchases - Direct Materials } & 133,000 \\\hline \text { Direct Labor } & 74,380 \\\hline \text { Indirect Materials } & 52,350 \\\hline \text { Indirect Labor } & 132,500 \\\hline \text { Depreciation on Factory Plant and Equipment } & 72,160 \\\hline \text { Plant Utilities and Insurance } & 70,980 \\\hline\end{array}$$ How much is the cost of goods manufactured?

• A) $838,170
• B) $750,670
• C) $900,670
• D) $766,010

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Definitions:

Capital Formation

The process of building up the stock of physical and financial assets in an economy, often through investment in productive assets.

Autonomous Consumption

The level of consumption that occurs when income is zero; it represents the expenditures that consumers must make even when they have no income.

Induced Consumption

Consumer spending that increases when income increases, and decreases when income decreases, reflecting behavioral responses to changes in income.

Disposable Income

The amount of money left for households to use on saving and spending after income taxes are covered.