Hoovern Company Provided the Following Data for May What Is the Cost of Goods Sold?
A) $75,000
B)

question 46

Multiple Choice

Hoovern Company provided the following data for May: $\begin{array}{lr}\text { Direct materials } & \$ 60,000 \\\text { Direct labour } & \$ 30,000 \\\text { Manufacturing overhead } & \$ 80,000 \\\text { Beginning finished goods inventory } & \$ 15,000 \\\text { Ending finished goods inventory } & \$ 34,000 \\\text { Production in units } & 10,000\end{array}$ What is the cost of goods sold?

• A) $75,000
• B) $151,000
• C) $165,000
• D) $184,000

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Definitions:

Direct Labor-Hour

A metric indicating the total hours worked by employees directly involved in the production process, often used for costing purposes.

Labor Rate

The amount paid to an employee per unit of time, usually per hour or year.

Direct Materials Purchase Budget

A financial plan that estimates the quantities and costs of direct materials to be purchased to meet production requirements.

Ending Inventories

Ending inventories refer to the final amount of goods available for sale or use at the end of an accounting period.