The Following Information Was Obtained from the Accounting Records of Stevenson

question 134

Multiple Choice

The following information was obtained from the accounting records of Stevenson Incorporated:
$\begin{array}{ll}\text { Direct materials purchased } & \$ 80,000 \\\text { Direct materials used } & \$ 54,000 \\\text { Direct manufacturing labor costs } & \$ 12,000 \\\text { Indirect manufacturing labor costs } & \$ 11,000 \\\text { Selling expenses } & \$ 16,000 \\\text { Administrative expenses } & \$ 22,000 \\\text { Factory utilities costs } & \$ 20,000 \\\text { Rental cost of factory machines } & \$ 50,000\\ \text {Work in process inventory, beginning }&0 \\ \text {Work in process inventory, end }&0 \\ \text {Finished goods inventory, beginning }&\$10,000 \\ \text {Finished goods inventory, end }&\$30,000 \\\end{array}$
What is Cost of Goods Sold?

• A) $57,000
• B) $77,000
• C) $127,000
• D) $147,000

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Definitions:

Sufficiently Definite

A legal standard indicating that a contract or agreement contains clear, precise, and unambiguous terms that can be enforced.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm due to the wrongful act of another.

Expenses Incurred

Costs that have been recognized or are payable due to business activities or transactions.

Breach Of Contract

The violation of any of the agreed-upon terms and conditions of a binding contract.