Use the Following Data to Determine the Cost of Goods

question 90

Multiple Choice

Use the following data to determine the cost of goods manufactured.
$$\begin{array} { l r } \text { Beginning finished goods inventory } & \$ 6,200 \\\text { Direct labor } & 15,100 \\\text { Beginning goods in process inventory } & 1,500 \\\text { General and administrative expenses } & 20,000 \\\text { Direct materials used } & 20,500 \\\text { Ending goods in process inventory } & 4,000 \\\text { Indirect labor } & 7,300 \\\text { Ending finished goods inventory } & 5,000 \\\text { Indirect materials } & 3,400 \\\text { Depreciation - factory equipment } & 2,000\end{array}$$

• A) $65,800
• B) $45,800
• C) $49,500
• D) $52,300
• E) $47,100

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Definitions:

Intermediary

A third party that acts as a mediator or middleman between two entities in a business transaction, facilitating the process.

Indirect Exporting

A method of entering foreign markets by selling products to intermediaries, who in turn sell them to customers in the target market, rather than direct exporting.

Harley-Davidson

An iconic American motorcycle manufacturer known for its heavyweight motorcycles and distinctive brand culture.

Foreign Assembly

The practice of assembling products in a country different from where the components were manufactured, often to save labor costs or avoid import tariffs.