Answer the Following Questions Using the Information Below:
Leslie Manufacturing

question 37

Multiple Choice

Answer the following questions using the information below:
Leslie Manufacturing reported the following:
$$\begin{array} { | l | r | } \hline\text { Revenue } & \$ 450,000 \\\hline \text { Beginning inventory of direct materials, January 1, 2015 } & 20,000 \\\hline \text { Purchases of direct materials } & 156,000 \\\hline \text { Ending inventory of direct materials, December 31, 2015 } & 18,000 \\\hline \text { Direct manufacturing labor } & 21,000 \\\hline \text { Indirect manufacturing costs } & 42,000 \\\hline \text { Beginning inventory of finished goods, January 1, 2015 } & 40,000 \\\hline \text { Cost of goods manufactured } & 114,000 \\\hline \text { Ending inventory of finished goods, December 31, 2015 } & 45,000 \\\hline \text { Operating costs } & 150,000 \\\hline\end{array}$$
-What is Leslie's cost of goods sold?

• A) $103,000
• B) $109,000
• C) $112,000
• D) $118,000

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Definitions:

Importer

An individual or company that buys goods or services from abroad for domestic use or sale.

World Price

The international market price of a good or service, determined by global supply and demand.

Domestic Supply

The total amount of a product or service that is available for consumption or use within a domestic market.

Trade Restrictions

Regulations imposed by governments to limit the free exchange of goods and services across borders, including tariffs, quotas, and embargoes.