Use the Following Information to Compute the Cost of Goods

question 104

Multiple Choice

Use the following information to compute the cost of goods manufactured:
$\begin{array}{lr}\text { Beginning finished goods inventory } & \$ 9,250 \\\text { Beginning goods in process inventory } & 8,700 \\\text { Beginning raw materials } & 7,500 \\\text { Depreciation on factory equipment } & 6,000 \\\text { Direct labor } & 75,000 \\\text { Ending finished goods inventory } & 8,750 \\\text { Ending goods in process inventory } & 9,300 \\\text { Ending raw materials } & 8,500 \\\text { Factory Supervisor's salary } & 50,000 \\\text { Raw material purchases } & 14,000\end{array}$

• A) $143,400
• B) $13,000
• C) $143,000
• D) $144,500
• E) $93,400

Describe the key components and the role of data storage in accounting information systems.

Identify the various types of software and programs supporting managerial operations within an accounting information system.

Comprehend the flexibility principle and its importance in tailoring accounting information systems to a company's needs.

Understand the process and importance of capturing information from source documents.

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Definitions:

Ending Inventory

Goods' valuation ready for trading at the end of a bookkeeping period.

FOB Shipping Point

A term that indicates the buyer takes responsibility for goods once they are shipped, and the point of departure marks the transfer.

Inventory Records

Documentation that keeps track of the quantities, locations, and values of a company's inventory, assisting in the management and control of stock.

FIFO Inventory Valuation

An accounting method for valuing inventory where the first items placed in inventory are the first ones sold, affecting cost of goods sold and ending inventory valuation.