Darius Manufacturing,Inc The Inventory Account Balances as of January 1 Are Given

question 175

Multiple Choice

Darius Manufacturing,Inc.provided the following information for the year: $$\begin{array} { | l | r | } \hline \text { Purchases - Direct Materials } & \$ 90,000 \\\hline \text { Plant Utilities and Insurance } & 67,500 \\\hline \text { Indirect Materials Used } & 11,040 \\\hline \text { Indirect Labor } & 4420 \\\hline \text { Direct Materials Used in Production } & 99,000 \\\hline \text { Direct Labor } & 119,500 \\\hline \text { Depreciation on Factory Plant and Equipment } & 5000 \\\hline \text { Cost of Goods Manufactured } & 291,500 \\\hline\end{array}$$ The inventory account balances as of January 1 are given below.
$$\begin{array} { | l | r | } \hline \text { Direct Materials } & \$ 46,000 \\\hline \text { Work-in-Process Inventory } & 1000 \\\hline \text { Finished Goods Inventory } & 50,000 \\\hline\end{array}$$ What is the ending balance in the Work-in-Process Inventory account?

• A) $15,960
• B) $1000
• C) $50,000
• D) $45,000

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Definitions:

Movement

In economic terms, it often refers to a change in price or quantity in response to market forces on a graph.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choosing among options.

Inputs

Refers to the resources used in the production of goods and services, including labor, capital, and materials.

Impossible Production

A situation in economic theory where the resources available are not sufficient to produce a desired combination of goods and services.