Use the Following Data to Calculate the Cost of Goods

question 116

Multiple Choice

Use the following data to calculate the cost of goods sold for the period: $\begin{array}{lr}\text { Beginning Raw Materials Inventory } & \$ 30,000 \\\text { Ending Raw Materials Inventory } & 70,000 \\\text { Beginning Work in Process Inventory } & 40,000 \\\text { Ending Work in Process Inventory } & 46,000 \\\text { Beginning Finished Goods Inventory } & 72,000 \\\text { Ending Finished Goods Inventory } & 68,000 \\\text { Cost of Goods Manufactured for the period } & 246,000\end{array}$

• A) $250,000.
• B) $290,000.
• C) $242,000.
• D) $258,000.
• E) $246,000.

Apply the first-in, first-out (FIFO) method in process costing.

Differentiate between direct materials and conversion costs in process costing.

Calculate the total number of units to be assigned costs on the cost of production report.

Understand the role of beginning and ending inventory in process costing.

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Definitions:

Differentiated Products

Goods that are distinguished from one another by quality, design, branding, and other features that make them unique to consumers.

Easy Entry And Exit

A market characteristic where firms can freely enter or leave the industry without substantial barriers.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Monopolistically Competitive

Describes a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power and product differentiation.