Reference: 16_02
Refer to the Following Table of Cost Information

question 104

True/False

Reference: 16_02
Refer to the following table of cost information:
$\begin{array}{llr}&\text { Goods in } & \text { Goods in } & \\&\text { Process- } & \text { Process- } & \text { Finished } \\&\underline{\text { Pickling }} & \underline{\text { Canning }} &\underline{ \text { Goods }}\\ \text { Beginning inventory } &\$100,000&\$150,000&\$90,000\\ \text {Costs incurred: } &\\ \text { Direct materials } &40,000&50,000\\ \text { Direct labor } &12,000&70,000\\ \text {Overhead applied } &60,000&105,000\\ \text { Coststransferred out } &(29,000)&(35,000)\\ \text { Coststransferred in.} &&(250,000)&(249,000)\\ \text { Cost of goods sold } &\underline{\quad\quad}&\underline{\quad\quad}&\underline{(525,000)}\\ \text {Ending inventory } & \underline{\$70,000}& \underline{\$130,000}& \underline{\$60,000}\\\end{array}$

-The following journal entry would be made to record the use of direct labor in the reporting period covered by the information:
$\begin{array}{llr} \text { Goods in Process Inventory, Pushing Dept } &120,000\\ \text { Goods in Process Inventory, Shoving Dept } &70,000\\ \text { Factory Payroll } &&190,000\end{array}$

---

Definitions:

Production Costs

The total expenses incurred in manufacturing a product, including raw materials, labor, and overhead costs.

Disbursements Section

Part of financial statements or reports that details the outflow of cash or cash equivalents, often within the context of operating, investing, and financing activities.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping businesses manage their cash flow effectively.

Cash Disbursements

Cash disbursements are the payments a company makes in cash, including expenses, debt payments, and distributions to shareholders.