Fireox Company's Selected Cost Data for 2017 Are Shown Below

question 67

Multiple Choice

Fireox Company's selected cost data for 2017 are shown below:
$$\begin{array} { | l | l | } \hline \text { Cost of goods manufactured } & \$ 147,700 \\\hline \text { Work in process inventory, } 1 \text { Jan } 2017 & 19,000 \\\hline \text { Work in process inventory, 31 Dec } 2017 & 20,500 \\\hline \text { Direct materials used } & 18,100 \\\hline\end{array}$$
What is the total of manufacturing costs incurred by Fireox Company in 2017?

• A) $149,200
• B) $146,200
• C) $37,100
• D) $21,400

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Definitions:

Effective-Interest Method

An accounting technique used to amortize the discount or premium on bonds payable or receivable over the life of the bond, reflecting the bond's yield.

Zero Coupon Bonds

Bonds issued at a discount from their face value, which do not pay periodic interest but are redeemed at full face value at maturity.

Effective Interest Rate

The real rate of interest taking into account the effects of compounding over a given period.