Use the Following Information to Compute the Cost of Goods

question 157

Multiple Choice

Use the following information to compute the cost of goods manufactured:
$$\begin{array} { l r } \text { Beginning finished goods inventory } & \$ \\& 9,250 \\\text { Beginning goods in process inventory } & 8,700 \\\text { Beginning raw materials } & 7,500 \\\text { Depreciation on factory equipment } & 6,000 \\\text { Direct labor } & 75,000 \\\text { Ending finished goods inventory } & 8,750 \\\text { Ending goods in process inventory } & 9,300 \\\text { Ending raw materials } & 8,500 \\\text { Factory Supervisor's salary } & 50,000 \\\text { Raw material purchases } & 14,000\end{array}$$

• A) $143,400
• B) $13,000
• C) $143,000
• D) $144,500
• E) $93,400

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Definitions:

Law of Agency

A legal doctrine concerning the relationship where one party, the agent, is authorized to act on behalf of another, the principal, in transactions with third parties.

Mental Capacity

An individual's cognitive ability to understand, make, and communicate informed decisions regarding personal or legal matters.

Duty of Loyalty

A legal and ethical obligation requiring individuals, particularly directors and officers of a corporation, to act in the best interests of the corporation and its shareholders.

Nature of Agency

Refers to the relationship established when one party, the agent, is authorized to act on behalf of another, the principal, in dealing with third parties.