Question : 51. Clyde Retailers a local merchandiser which buys vintage clothing and : 1291663

51. Clyde Retailers is a local merchandiser which buys vintage clothing and sells it to local college students. Clyde began the year with inventory costing $60,000. During the year inventory costing $300,000 was purchased. At the end of the year, inventory costing $45,000 still remained. What was Clyde’s cost of goods sold for the year? A. $255,000B. $285,000C. $300,000D. $315,000

52. In the books of a manufacturing company, the journal entry to record raw materials used would include a: A. debit to finished goods.B. debit to raw materials.C. debit to work in process.D. debit to cost of goods sold.

53. In 2011 Bradshaw Inc. incurred $40,000 of manufacturing overhead costs which will be paid for in 2012. Which of the following would be the correct journal entry to record this transaction? A. Cost of Goods Sold                    40,000     Accounts Payable                                        40,000B. Finished Goods Inventory           40,000     Accounts Payable                                        40,000C. Overhead Expenses                   40,000     Accounts Payable                                        40,000D. Work in Process Inventory       40,000     Accounts Payable                                        40,000

54. In the books of a manufacturing company, the journal entry to record cost of goods manufactured would include a: A. credit to work in process.B. credit to finished goods.C. debit to work in process.D. debit to cost of goods sold.

55. When the cost of a product is matched with its sales revenue, the result (difference) is called: A. net operating income.B. gross margin.C. cost of goods sold.D. cost of goods manufactured.

56. Clapton Inc. would like to prepare an income statement for March. Their production department records show that total product costs in March were $225,000 when 50,000 units were produced. Their sales department records show that 46,000 units were sold for $16 each. Monthly administrative and marketing expenses totaled $60,000. What should be net operating income for March? (Ignore taxes) A. $529,000B. $473,800C. $451,000D. $469,000

57. Which of the following statements is true regarding period costs? A. They “attach” themselves to the product.B. They will appear the balance sheet until the product is sold.C. They will appear on the income statement in the year they are incurred.D. They will not impact gross margin or net operating income.

58. Chancellor Industries, a manufacturing company, prepays its insurance coverage for a two-year period. The premium for two-year’s worth of coverage is $14,400 and is paid at the beginning of the first year. Two-thirds of the premium relates to factory operations and one-third relates to selling and administrative activities.The amount of premium that should be recorded as a product cost for the first year is: A. $  4,800.B. $  2,400.C. $  9,600.D. $14,400.

59. Jones Manufacturing Inc.Jones Manufacturing Inc. incurred the following costs in November: 

Direct labor$50,000 Advertising costs$  3,000

Indirect labor20,000 Factory rent10,000

Administrative salaries25,000 Factory depreciation6,000

Direct materials purchased23,000 Administrative rent5,000

Indirect materials used4,000 Administrative depreciation7,000

In addition, the following information is also available: 

 Beginning Ending

Raw materials$  5,000 $  8,000

Work in process60,000 55,000

Finished goods17,250 9,200

Number of units produced20,000 units

Number of units sold 

     (sales price of $25 per unit)21,400 units

Refer to the Jones Manufacturing Inc. information above. Cost of goods manufactured in November is: A. $  91,000.B. $115,000.C. $155,000.D. $143,000.

60. Jones Manufacturing Inc.Jones Manufacturing Inc. incurred the following costs in November: 

Direct labor$50,000 Advertising costs$  3,000

Indirect labor20,000 Factory rent10,000

Administrative salaries25,000 Factory depreciation6,000

Direct materials purchased23,000 Administrative rent5,000

Indirect materials used4,000 Administrative depreciation7,000

In addition, the following information is also available: 

 Beginning Ending

Raw materials$  5,000 $  8,000

Work in process60,000 55,000

Finished goods17,250 9,200

Number of units produced20,000 units

Number of units sold 

     (sales price of $25 per unit)21,400 units

Refer to the Jones Manufacturing Inc. information above. Net operating income for November is: (Ignore taxes) A. $371,950.B. $411,950.C. $369,150.D. $382,000.