Benson Inc.'s accounting records reflect the following inventories: Dec. 31, 2016 $ 80,000 Dec. 31, 2017 $ 64,000 Raw materials inventory Work in process 104,000 116,000 inventory Finished goods inventory 100,000 92,000 During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. Assume Benson's cost of goods manufactured for 2017 amounted to $1,660,000. How much would it report as cost of goods sold for the year? O a) $1,760,000 b) $1,668,000 Oc) $1,568,000 d) $1,652,000

Benson Inc.'s accounting records reflect the following inventories: Dec. 31, 2016 $ 80,000 Dec. 31, 2017 $ 64,000 Raw materials inventory Work in process 104,000 116,000 inventory Finished goods inventory 100,000 92,000 During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. Assume Benson's cost of goods manufactured for 2017 amounted to $1,660,000. How much would it report as cost of goods sold for the year? O a) $1,760,000 b) $1,668,000 Oc) $1,568,000 d) $1,652,000

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

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Benson Inc.'s accounting records reflect the following inventories:
Dec. 31, 2016
$ 80,000
Dec. 31, 2017
$ 64,000
Raw materials
inventory
Work in process
104,000
116,000
inventory
Finished goods
inventory
100,000
92,000
During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor
costs of $250,000, and incurred manufacturing overhead totaling $160,000.
Assume Benson's cost of goods manufactured for 2017 amounted to $1,660,000.
How much would it report as cost of goods sold for the year?
O a) $1,760,000
b) $1,668,000
c) $1,568,000
d) $1,652,000

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