Finished Goods Inventory Is $190,000

question 124

Multiple Choice

Finished goods inventory is $190,000. If overhead applied to these goods is $72,000, and the overhead rate is 120% of direct labor, how much direct materials cost was incurred in producing the inventory?

• A) $31,600.
• B) $58,000.
• C) $56,000.
• D) $60,000.
• E) $86,400.

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Definitions:

Cross-Cultural Psychologist

A psychologist who studies the ways in which culture influences mental processes and behavior.

John Berry

A psychologist known for his work in the fields of cross-cultural psychology and acculturation psychology, exploring how individuals adapt to changes in cultural environments.

Non-Western Countries

Nations or regions outside the cultural sphere of the Western world, often emphasizing differing social, economic, and cultural practices.

Terman

Lewis Terman was a psychologist who is best known for his revision of the Stanford-Binet IQ test and his studies in gifted children.