Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c }
& \text { Dec. 31, 2016 } & \text { Dec. 31, 2017 } \
\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished goods inventory } & 100,000 & 92,000
\end{array}$$ During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much raw materials were transferred to production during 2017 for Benson?
A)$1,386,000
B)$1,466,000
C)$1,450,000
D)$1,434,000

Question

Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c } 
& \text { Dec. 31, 2016 } & \text { Dec. 31, 2017 } \
\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished goods inventory } & 100,000 & 92,000
\end{array}$$ During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much raw materials were transferred to production during 2017 for Benson?
A)$1,386,000
B)$1,466,000
C)$1,450,000
D)$1,434,000

Quizplus · Accepted Answer

The raw materials transferred to production is calculated as: Beginning Raw Materials Inventory + Purchases - Ending Raw Materials Inventory = $80,000 + $1,450,000 - $64,000 = $1,466,000.

Benson Inc During 2017, Benson Purchased $1,450,000 of Raw Materials, Incurred Direct