Consider the Following Information: Direct Materials Used Totaled $124,700;direct Labor

question 147

Multiple Choice

Consider the following information: direct materials used totaled $124,700;direct labor amounted to $412,000;overhead was computed to be $789,600;Work in Process Inventory on March 1,2014,was $482,500;and Work in Process Inventory on March 31,2014,was $597,100.What was the cost of goods manufactured?

• A)$1,211,700
• B)$729,200
• C)$1,440,900
• D)$422,100

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Definitions:

Expense Recognition Principle

A core principle of accrual accounting that dictates when expenses are recognized and reported in the financial statements, generally aligning expenses with the revenues they help to generate.

Income Statement

A financial report detailing a company's revenue, cost of goods sold, gross profit, operating expenses, and net income over a specific period.

Managers

Individuals responsible for planning, directing, and overseeing the operations and fiscal health of a business or organization.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid out.