Given the Following Information, Determine the Cost of Goods Sold

question 36

Multiple Choice

Given the following information, determine the cost of goods sold. $$\begin{array} { | l | r | } \hline \text { Direct Labor Incurred } & \$ 63,000 \\\hline \text { Manufacturing Overhead Incurred } & 179,500 \\\hline \text { Direct Materials Used } & 150,000 \\\hline \text { Finished Goods Inventory, } 1 / 1 / 2015 & 197,500 \\\hline \text { Finished Goods Inventory, } 12 / 31 / 2015 & 221,000 \\\hline \text { Work-in-Process Inventory, } 1 / 1 / 2015 & 96,500 \\\hline \text { Work-in-Process Inventory, } 12 / 31 / 2015 & 109,000 \\\hline\end{array}$$

• A) $380,000
• B) $1,016,500
• C) $356,500
• D) $414,000

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Definitions:

Consumer Goods

Goods purchased and used by consumers rather than manufacturers for producing other goods.

Wealth Of Nations

A seminal work by Adam Smith published in 1776, which is considered the foundation of modern economic theory, focusing on the factors that promote prosperity and growth in nations.

Adam Smith

An 18th-century Scottish economist and philosopher known as the father of modern economics and author of "The Wealth of Nations."

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one could have received by taking the alternative action.