Work in Process Inventory Increased by $20,000 During 2011

question 114

Multiple Choice

Work in process inventory increased by $20,000 during 2011. Cost of goods manufactured was $180,000. Total manufacturing costs incurred in 2011 are:

• A) $198,000
• B) $160,000
• C) $189,000
• D) $200,000

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Definitions:

Cornfield

A field in which corn is grown, often symbolizing areas of agricultural farming.

Efficient Output Level

The quantity of goods or services produced where the marginal cost of production equals the marginal revenue received, leading to optimal allocation of resources.

Units

Standard quantities used to specify measurements and quantify the magnitude of physical quantities.

Perfect Competition

A market structure characterized by a large number of small firms, homogenous products, perfect information, and no barriers to entry or exit, leading to price-taking behavior.