Reference: 14_02
the Following Information Is Available for Talking Toys

question 81

Multiple Choice

Reference: 14_02
The following information is available for Talking Toys, Inc. for the current year:
$\begin{array}{lr}\text { Direct materials used } & \$ 12,500 \\\text { Goods in process, January 1 } & 50,000 \\\text { Goods in process, December 31 } & 37,000 \\\text { Total Factory overhead } & 5,500 \\\text { Direct labor used } & 26,500\end{array}$
-The total manufacturing costs incurred during the year were:

• A) $13,000
• B) $44,500
• C) $57,500
• D) $94,500
• E) $89,000

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Definitions:

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, serving as an estimate for lease accounting when the implicit rate in the lease is unclear.

Balance Sheet

An accounting document that outlines the assets, liabilities, and owners' equity of a company on a specific date.

Land

A fixed asset category representing the ownership of a physical parcel of the earth's surface which is used in operations and has an indefinite useful life.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.