During Its First Year of Operations,Brown Company Incurred the Following

question 10

Multiple Choice

During its first year of operations,Brown Company incurred the following product costs: Direct materials used in production $200,000
Direct labor $175,000
Manufacturing overhead $145,500
Brown Company's ending Work in Process Inventory amounted to $35,000 at the end of the year.What is the company's cost of finished goods manufactured for the year?

• A)$200,000.
• B)$375,000.
• C)$485,500.
• D)$520,500.

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Definitions:

Accrual Accounting

A financial reporting strategy that recognizes income and expenditures at the time they are earned or incurred, without regard to the actual movement of cash.

Operating Cash

refers to the cash that a business generates from its normal operating activities, crucial for maintaining day-to-day operations.

GAAP

Generally Accepted Accounting Principles, which are a set of rules and standards used for financial reporting in the U.S.

Appropriately Recognized

Pertains to the correct recording of financial transactions and elements in accordance with accounting standards and principles.