For Work Done During August, Printing Press Company Incurred Direct

question 73

Multiple Choice

For work done during August, Printing Press Company incurred direct materials costs of $130,000 and conversion costs of $259,000. The company employs a just-in-time operating philosophy and backflush costing. At the end of August, it was determined that the Work in Process Inventory account had been assigned $1,000 of costs, and the ending balance of the Finished Goods Inventory account was $3,000. There were no beginning inventory balances. What is the Cost of Goods Sold account's ending balance for August?

• A) $389,000
• B) $388,000
• C) $386,000
• D) $385,000

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Definitions:

B.C. Supreme Court

The superior trial court for the province of British Columbia, Canada, that hears civil and criminal law cases.

Federal Court

A court system at the national level that has jurisdiction over legal disputes that involve federal laws, the constitution, or disputes between states or between the U.S. government and foreign governments.

Balance of Probabilities

A standard of proof in civil trials requiring that a case is more likely to be true than not, essentially over 50% likelihood.

Criminal Matter

A legal issue or case involving violations of public law and the commission of acts that are prohibited and punishable by the state.