Question : 31. Materials that can be directly traced to a particular product : 1291661

 

31. Materials that can be directly traced to a particular product and become an integral part of the finished product are called: A. indirect materials.B. direct materials.C. supplies.D. product materials.

 

32. When nonmanufacturing costs are subtracted from gross margin, the result is called: A. cost of goods sold.B. net operating income.C. sales.D. nonmanufacturing income.

 

33. Michael’s Manufacturing, Inc.Michael’s Manufacturing, Inc. has the following information available for the month of July: 

 Beginning Ending

Raw materials inventory$40,000 $  62,000

Work-in-process inventory85,000 45,000

Finished goods inventory20,000 37,000

    

Raw materials purchased  $150,000

Direct labor costs  50,000

Overhead costs  45,000

Refer to the Michael’s Manufacturing, Inc. information above. Raw materials used for July is: A. $150,000B. $128,000C. $190,000D. $172,000

 

34. Michael’s Manufacturing, Inc.Michael’s Manufacturing, Inc. has the following information available for the month of July: 

 Beginning Ending

Raw materials inventory$40,000 $  62,000

Work-in-process inventory85,000 45,000

Finished goods inventory20,000 37,000

    

Raw materials purchased  $150,000

Direct labor costs  50,000

Overhead costs  45,000

Refer to the Michael’s Manufacturing, Inc. information above. Cost of goods manufactured for July is: A. $183,000B. $206,000C. $263,000D. $223,000

 

35. Michael’s Manufacturing, Inc.Michael’s Manufacturing, Inc. has the following information available for the month of July: 

 Beginning Ending

Raw materials inventory$40,000 $  62,000

Work-in-process inventory85,000 45,000

Finished goods inventory20,000 37,000

    

Raw materials purchased  $150,000

Direct labor costs  50,000

Overhead costs  45,000

Refer to the Michael’s Manufacturing, Inc. information above. Cost of goods sold for July is: A. $246,000B. $206,000C. $280,000D. $263,000

 

36. Nate’s Novelties, Inc.Nate’s Novelties, Inc. has the following information available for July: 

 Beginning Ending

Raw materials inventory$12,000 $  9,000

Work-in-process inventory35,000 20,000

Finished goods inventory20,000 44,000

    

Raw materials purchased  $25,000

Direct labor costs  55,000

Overhead costs  35,000

Refer to the Nate’s Novelties, Inc. information above. Raw materials used for July is: A. $21,000.B. $22,000.C. $25,000.D. $28,000.

 

37. Nate’s Novelties, Inc.Nate’s Novelties, Inc. has the following information available for July: 

 Beginning Ending

Raw materials inventory$12,000 $  9,000

Work-in-process inventory35,000 20,000

Finished goods inventory20,000 44,000

    

Raw materials purchased  $25,000

Direct labor costs  55,000

Overhead costs  35,000

Refer to the Nate’s Novelties, Inc. information above. Cost of goods manufactured for July is: A. $153,000.B. $103,000.C. $130,000.D. $133,000.

 

38. Nate’s Novelties, Inc.Nate’s Novelties, Inc. has the following information available for July: 

 Beginning Ending

Raw materials inventory$12,000 $  9,000

Work-in-process inventory35,000 20,000

Finished goods inventory20,000 44,000

    

Raw materials purchased  $25,000

Direct labor costs  55,000

Overhead costs  35,000

Refer to the Nate’s Novelties, Inc. information above. Cost of goods sold for July is: A. $106,000.B. $157,000.C. $129,000.D. $109,000.

 

39. Thompson Inc. has the following selected information available for 2011: 

Cost of goods manufactured$220,000

Cost of goods sold150,000

Direct labor costs incurred65,000

Raw material purchased90,000

Raw material used100,000

  

Beginning work in process23000

Ending work in process11000

Manufacturing overhead costs in 2011 amounted to: A. $67,000.B. $55,000.C. $43,000.D. $53,000.

 

40. Products and their costs flow through a production facility in the following order: A. work in process, finished goods, cost of goods soldB. raw materials, work in process, finished goods, cost of goods soldC. work in process, raw materials, cost of goods sold, finished goodsD. work-in-process, cost of goods manufactured, cost of goods sold