It Is Estimated That Direct Materials, Direct Labour and Factory

question 21

Multiple Choice

It is estimated that direct materials, direct labour and factory overhead for the period will total $60 000. If work in process at the start is $12 000 and estimated work in process at the end is $15 000, the cost of goods manufactured is:

• A) $45 000
• B) $57 000
• C) $72 000
• D) $75 000

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Definitions:

Contributory Plan

A type of insurance plan or pension scheme where both the employer and the employee contribute towards the cost of the benefits.

Salary

Fixed regular payment, typically expressed on an annual basis, made by an employer to an employee, especially a professional.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Pregnancy Discrimination Act

A United States federal law that prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions in any aspect of employment.