For Work Done During August,Printing Press Company Incurred Direct Materials

question 61

Multiple Choice

For work done during August,Printing Press Company incurred direct materials costs of $139,000 and conversion costs of $260,000.The company employs a just-in-time operating philosophy and backflush costing.At the end of August,it was determined that the Work in Process Inventory account had been assigned $1,080 of costs,and the ending balance of the Finished Goods Inventory account was $1,220.There were no beginning inventory balances.What was the ending balance of the Cost of Goods Sold account for August?

• A) $396,700
• B) $397,780
• C) $397,920
• D) $399,000

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Definitions:

Maximizing Utility

The economic principle aiming to achieve the highest level of satisfaction possible with available resources.

Price

The cost at which something is being sold, reflecting the value that consumers or purchasers assign to a good or service.

Utility

An economic term referring to the total satisfaction received from consuming a good or service.

Marginal Utility

The increased gratification or utility derived from the consumption of an extra unit of a good or service.