McGown Corp. has the following information:

	Beginning Inventory (1/1)			Ending Inventory (12/31)
Raw Materials Inventory	$	25,300		$	39,100
Work in Process Inventory	$	24,100		$	26,600
Finished Goods Inventory	$	39,000		$	21,900

Additional information for the year is as follows:

Raw materials purchases	$	106,100
Direct labor	$	81,600
Manufacturing overhead applied	$	87,000
Indirect materials	$	0

Compute the cost of goods manufactured.

Multiple Choice

• $258,400

• $243,800

• $263,400

• $282,800

Optimum Finance Inc. provides budget, savings, and investment services to clients who want a stress-free financial lifestyle. The company customizes a program for each client based on their individual goals that includes budget recommendations, investment counseling, and savings techniques. The company uses a job order cost system that keeps track of the cost of the amount of time financial consultants spend with each client.

Optimum applies all indirect operating costs (e.g., rent, utilities, and management salaries) as a percentage of the consultants labor cost. During the most recent year, the firm estimated that it would pay $500,000 to its consultants and incur indirect operating costs of $875,000. Actual consultant labor costs were $537,500 and actual indirect operating costs were $850,000. During the year, Optimum provided 76 hours of consulting services to Robert Howard for which Optimum pays an average of $20 per hour. What is the total cost of providing services to Robert?

Multiple Choice

• $4,104.

• $4,180.

• $3,924.

• $2,389.