If Beginning Work-In-Process Inventory Is $120,000, Ending Work-In-Process Inventory Is

question 216

Multiple Choice

If beginning work-in-process inventory is $120,000, ending work-in-process inventory is $160,000, cost of goods manufactured is $400,000 and direct materials used are $100,000, what are the conversion costs?

• A) $140,000
• B) $280,000
• C) $300,000
• D) $340,000

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Definitions:

Limited Partners

Individuals in a partnership who invest money but are not involved in day-to-day management, and whose liability is limited to the amount of their investment.

General Partnership

A business structure where two or more individuals agree to share in all assets, profits, and financial and legal liabilities of a venture.

Participating Investors

Individuals or entities that engage in funding ventures with the expectation of earning a return on their investment.

Liability

The state of being responsible for something, especially by law.