ComPrint Co In Addition, Direct Labour Costs of $30,000 Were Incurred, Overhead

question 165

Multiple Choice

ComPrint Co. had the following beginning and ending inventory balances for the year ended December 31: $$\begin{array} { l c c } & \text { January 1 } & \text { December } 31 \\\text { Materials } & \$ 10,000 & \$ 8,000 \\\text { Work in Process } & \$ 18,000 & \$ 17,000 \\\text { Finished Goods } & \$ 21,000 & \$ 16,500\end{array}$$
In addition, direct labour costs of $30,000 were incurred, overhead equalled $42,000, materials purchased were $27,000, and selling and administrative costs were $22,000. ComPrint Co. sold 25,000 units of product during the year at a sales price of $5.00 per unit.

-Refer to the Figure.What were the total manufacturing costs for the year?

• A)$101,000
• B)$102,000
• C)$106,500
• D)$123,000

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Definitions:

Initial Investments

The initial amount of money put into a project or venture at the start of its operation.

Cost of Capital

The rate of return that a company must pay to its capital providers, including both debt and equity, to finance its assets.

Expansion Project

A business initiative aimed at increasing the size, reach, or capabilities of the company, often requiring significant capital investment.

Capital Rationing

The process of selecting profitable projects to invest in, limited by the availability of funds.