A Company Had Beginning Inventories as Follows: Direct Materials,$300;Work-In-Process,$500;Finished Goods,$700

question 54

Multiple Choice

A company had beginning inventories as follows: Direct Materials,$300;Work-in-Process,$500;Finished Goods,$700.It had ending inventories as follows: Direct Materials,$400;Work-in-Process,$600;Finished Goods,$800.Material Purchases (net including freight) were $1,400,Direct Labor $1,500,and Manufacturing Overhead $1,600.What is the Cost of Goods Sold for the period?

• A)$4,100.
• B)$4,200.
• C)$4,300.
• D)$4,400.

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Definitions:

Direct Materials

Raw materials that are directly used in the production of a product, easily traceable to the finished product.

Bakery

A place where bread, cakes, cookies, and other baked goods are made or sold.

Factory Overhead Cost

Every cost involved in manufacturing that isn't categorized as direct labor or direct materials.

Factory Heating

An operational expense associated with maintaining an appropriate temperature within a manufacturing or production facility, often categorized as a facility overhead cost.