The Goods in Process Inventory Account for XYZ Inc If the Overhead Is Applied at the Rate of 80

question 33

Multiple Choice

The Goods in Process Inventory Account for XYZ Inc.follows:
$$\begin{array}{l}\text { Goods in Process Inventory }\\\begin{array} { l r | l } \hline \text { Beginning balance } & \$ 4,750 & \\\text { Direct materials } & 17,925 & ? \quad \text { CoG Manufactured } \\\text { Direct labor } & 24,750 & \\\text { Applied overhead } &?& \\ \text { Ending balance } & \$ 10,400 &\end{array}\end{array}$$


If the overhead is applied at the rate of 80% of direct labor cost,what is the amount of Cost of Goods Manufactured?

• A) $19,800
• B) $56,825
• C) $61,775
• D) $51,365
• E) $37,025

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Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating how sensitive consumers are to price changes.

Price Discrimination

The strategy of selling the same product or service at different prices to different groups of consumers, based on their willingness or ability to pay.

Profits

The financial gain obtained when revenues from sales exceed the costs associated with production and selling the goods or services.

Perfect Price Discrimination

The price discrimination that results when a monopolist charges each consumer the maximum that the consumer is willing to pay.