Given the Following Information,determine the Cost of Sales A) $485,500
B) $419,000
C) $353,500
D) $376,500

question 41

Multiple Choice

Given the following information,determine the cost of sales.
$$\begin{array} { | l | l | } \hline \text { Direct labour incurred } & \$ 61,000 \\\hline \text { Manufacturing overhead incurred } & 177,500 \\\hline \text { Direct materials used } & 151,000 \\\hline \text { Finished goods inventory, 1/1/2017 } & 198,000 \\\hline \text { Finished goods inventory, 31/12/2017 } & 221,000 \\\hline \text { Work in process inventory, } 1 / 1 / 2017 & 26,000 \\\hline \text { Work in process inventory, 31/12/2017 } & 109,000 \\\hline\end{array}$$

• A) $485,500
• B) $419,000
• C) $353,500
• D) $376,500

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Definitions:

Money Market

A segment of the financial market where short-term financial assets are traded, facilitating the borrowing and lending of short-term funds.

Liquidity Preference Theory

A theory that suggests individuals prefer to have their resources in liquid form as opposed to investing in long-term assets, affecting interest rates and economic activity.

Money Demanded

The total amount of money that households and businesses wish to hold at any given interest rate, at a specific time.

Federal Funds Rate

The interest rate at which banks lend reserves to each other overnight, serving as a key monetary policy tool of the Federal Reserve.