If Beginning and Ending Goods in Process Inventories Are $5,000

question 128

Multiple Choice

If beginning and ending goods in process inventories are $5,000 and $15,000, respectively, and cost of goods manufactured is $170,000, what is the total manufacturing cost for the period?

• A) $180,000.
• B) $155,000.
• C) $160,000.
• D) $175,000.
• E) $165,000.

Evaluate the motivational effects of standard cost systems on employee behavior.

Comprehend the use of product costs in financial and management accounting.

Recognize the significance of significant and insignificant variances and the need for managerial investigation.

Acknowledge the roles and influence of production managers in controlling labor rates, usage, and material prices.

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Definitions:

Capital Lease

A long-term lease agreement that allows a lessee to use an asset while essentially treating it as if it were their own by recognizing it on their balance sheet.

Compounded Quarterly

The method of figuring out interest that includes both the original principal amount and the interest that has compounded from earlier periods, calculated every three months.

Long Term Liability

A financial obligation of a company that is due for a period exceeding one year, including bonds payable, long-term loans, lease obligations, and pension obligations.

Future Value

The amount of money an investment will grow to over a period of time at a specified interest or growth rate.