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

question 100

Multiple Choice

For work done during August,Printing Press Company incurred direct materials costs of $151,000 and conversion costs of $250,000.The company employs a traditional operating philosophy.At the end of August,it was determined that the Work in Process Inventory account had been assigned $1,000 of costs,and the ending balance of the Finished Goods Inventory account was $3,000.There were no beginning inventory balances.How much was charged to the Cost of Goods Sold account during August?

• A) $401,000
• B) $400,000
• C) $398,000
• D) $397,000

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Definitions:

Chain of Distribution

The sequence of entities through which goods or services pass until they reach the end consumer, including manufacturers, wholesalers, and retailers.

Component Parts

Component parts are individual pieces or elements that make up a product, which can be replaced or repaired independently of the rest of the product.

Defective Parts

Components or elements of a product that are faulty or not functioning as intended.

Statute of Repose

A law that sets an absolute deadline for initiating legal action, regardless of when an injury or damage is discovered.