Question : 21) Merchandising-sector companies A) purchase materials and convert them to finished : 1186142

 

21) Merchandising-sector companies

A) purchase materials and convert them to finished goods.

B) buy goods and resell them.

C) provide services or intangible products.

D) have only variable costs.

E) have period and some manufacturing costs.

 

22) Manufacturing-sector companies report on the balance sheet

A) only merchandise inventory.

B) only finished goods inventory.

C) direct materials inventory, work-in-process inventory, and finished goods inventory accounts.

D) no inventory accounts.

E) only work in progress inventory.

 

23) For a manufacturing company, direct material costs may be included in

A) direct materials inventory only.

B) merchandise inventory only.

C) both work-in-process inventory and finished goods inventory.

D) direct materials inventory, work-in-process inventory, and finished goods inventory accounts.

E) period costs.

24) Which of the following statements would be correct in a manufacturing business?

A) Completed goods are not normally included in the finished goods inventory.

B) Completed goods are part of the work in process category.

C) Work-in-process inventory, at the end of the accounting period, includes direct materials but not direct labour.

D) Materials put into production are classified as work-in-process inventory.

E) There can be no beginning finished goods inventory.

 

25) Goods available for sale that are not in ending inventory

A) are included in goods available for sale in the next year.

B) are included in the work-in-process inventory at the end of the year.

C) are not accounted for until the next year.

D) are incorporated in the cost of goods sold amount.

E) are included in beginning inventory.

 

Answer the following question using the information below.

 

Pederson Company reported the following:

 

Manufacturing costs

$2,000,000

Units manufactured

50,000

Units sold

47,000 units sold for $75 per unit

Beginning inventory

0 units

 

26) What is the amount of gross margin?

A) $1,750,000

B) $3,525,000

C) $3,405,000

D) $1,645,000

E) $1,525,000

Answer the following question(s) using the information below.

 

The following information pertains to Alleigh’s Mannequins:

 

Manufacturing costs

$1,500,000

Units manufactured

30,000

Units sold

29,500 units sold for $85 per unit

Beginning inventory

0 units

 

27) What is the average manufacturing cost per unit?

A) $50.00

B) $50.85

C) $17.65

D) $85.00

E) $49.50

 

28) What is the amount of ending finished goods inventory?

A) $42,500

B) $24,750

C) $25,000

D) $25,425

E) $42,500

 

29) What is the amount of gross margin?

A) $1,475,000

B) $1,500,000

C) $1,047,250

D) $1,032,500

E) $1,007,425

Use the information below to answer the following question(s).

 

Frazer Inc. had the following activities in the year:

 

Direct materials:

 

     Beginning inventory

$100,000

     Purchases

308,000

     Ending inventory

52,000

Direct manufacturing labour

80,000

Manufacturing overhead

60,000

Ending work in process inventory

20,000

Beginning work in process inventory

4,000

Ending finished goods inventory

80,000

Beginning finished goods inventory

120,000

 

30) What is Frazer’s cost of goods manufactured?

A) $536,000

B) $496,000

C) $480,000

D) $476,000

E) $512,000

 

 

 

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