Use the Following Information for Hayes, Inc -What Is the Total Amount of Manufacturing Costs Added to 31

question 188

Multiple Choice

Use the following information for Hayes, Inc., as of December 31 to answer the next questions:
$\begin{array}{lr}\text { Administrative salaries } & \$ 32,000 \\\text { Depreciation of factory equipment } & 25,000 \\\text { Depreciation of delivery vehicles } & 8,000 \\\text { Direct labor } & 68,000 \\\text { Factory supplies used } & 12,000 \\\text { Finished goods inventory, January 1 } & 57,000 \\\text { Finished goods inventory, December 31 } & 68,000 \\\text { Factory insurance } & 15,500\\\text { Interest expense } & 12,000 \\\text { Factory utilities } & 14,000 \\\text { Factory maintenance } & 7,500 \\\text { Raw materials inventory, January 1 } & 8,000 \\\text { Raw materials inventory, December 31 } & 4,000 \\\text { Raw material purchases } & 125,000 \\\text { Rent on factory building } & 25,000 \\\text { Repairs of factory equipment } & 11,500 \\\text { Sales commissions } & 37,500 \\\text { Goods in process inventory, January 1 } & 3,500 \\\text { Goods in process inventory, December 31 } & 2,000\end{array}$
-What is the total amount of manufacturing costs added to Goods In Process during the period?

• A) $393,000.
• B) $325,000.
• C) $389,500.
• D) $397,000.
• E) $307,500.

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Definitions:

Value Outlet

A retail store that offers products at lower prices by reducing overhead costs and offering goods that provide value for money.

Focused Merchandise Stores

Retail outlets that specialize in a specific type of product or market niche, aimed at catering to specific customer needs.

Specialty Discount Retailer

Retailers that focus on selling a specific category of products at reduced prices, often offering large selections in their niche.

Category Killer

A large retail store specializing in a specific product category, so dominant that it drives out or "kills" smaller competitors.