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An enterprise had the following opening and closing inventory balances in 2021: 1/1/21 12/31/21 Finished goods 90,000 105,000 260,000 130,000 Raw materials Work-in-progress 220,000 175,000 The following transactions and events occurred during 2021: > 300,000 of raw materials were purchased, of which 20,000 were returned because of defects. > 600,000 of direct labor costs were incurred. 750,000 of production overhead costs were incurred.

An enterprise had the following opening and closing inventory balances in 2021: 1/1/21 12/31/21 Finished goods 90,000 105,000 260,000 130,000 Raw materials Work-in-progress 220,000 175,000 The following transactions and events occurred during 2021: > 300,000 of raw materials were purchased, of which 20,000 were returned because of defects. > 600,000 of direct labor costs were incurred. 750,000 of production overhead costs were incurred.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 5MC: The moving average inventory cost flow assumption is applicable to which of the following inventory...
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The cost of goods sold for the year ended December 31, 2021 would be

a. 1,500,000

b. 1,650,000

c. 1,610,000

d. 1,480,000

An enterprise had the following opening and closing inventory balances in 2021: 1/1/21 12/31/21 Finished goods 90,000 105,000 260,000 130,000 Raw materials Work-in-progress 220,000 175,000 The following transactions and events occurred during 2021: > 300,000 of raw materials were purchased, of which 20,000 were returned because of defects. > 600,000 of direct labor costs were incurred. 750,000 of production overhead costs were incurred.
Transcribed Image Text:An enterprise had the following opening and closing inventory balances in 2021: 1/1/21 12/31/21 Finished goods 90,000 105,000 260,000 130,000 Raw materials Work-in-progress 220,000 175,000 The following transactions and events occurred during 2021: > 300,000 of raw materials were purchased, of which 20,000 were returned because of defects. > 600,000 of direct labor costs were incurred. 750,000 of production overhead costs were incurred.
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