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:

Credit Sale

A transaction where the buyer is allowed to pay for goods or services at a later date, as opposed to paying at the time of sale.

Monthly Interest Rate

The interest rate applied to a loan or investment, calculated to reflect the monthly compounding period.

Variable Cost

Costs that vary directly with the level of production or sales, such as materials and labor.

Sales Price

The amount of money a buyer pays to purchase a good or service from a seller.