145.Using the information below, calculate net income for the period.
Sales revenues for the period$1,304,000
Operating expenses for the period$239,000
Finished Goods Inventory, January 136,000
Finished Goods Inventory, December 3141,000
Cost of goods manufactured for the period$540,000
A. $774,000.
B. $769,000.
C. $530,000.
D. $535,000.
E. $448,000.
146.An internal control system consists of the policies and procedures managers use to do all of the following except:
A. Urge adherence to company policies.
B. Promote efficient operations.
C. Ensure reliable accounting.
D. Determine pricing for products.
E. Protect assets.
147.The schedule of cost of goods manufactured is divided into four parts consisting of all of the following except:
A. Direct materials.
B. Computation of cost of goods sold.
C. Overhead.
D. Computation of cost of goods manufactured.
E. Direct labor.
148.All of the following statements regarding manufacturing costs are true except:
A. Direct material costs that increase in total with volume of production are called variable costs.
B. The reporting of fixed and variable costs separately is not helpful to managers in analyzing cost behavior.
C. When overhead costs vary with production, they are called variable overhead.
D. When overhead costs don't vary with production, they are called fixed overhead.
E. Overhead can be both variable and fixed.
149.Using the information below, compute the raw materials inventory turnover:
Raw Materials Used$85,500
Beginning Raw Materials Inventory$8,000
Ending Raw Materials Inventory$9,000
A. 11.02.
B. 382.02.
C. 10.06.
D. 9.94.
E. 9.50.
150.Using the information below, compute the Days' sales in raw materials inventory:
Raw Materials Used$85,500
Beginning Raw Materials Inventory$8,000
Ending Raw Materials Inventory$9,000
A. 11.02.
B. 36.3.
C. 10.06.
D. 9.94.
E. 38.4.
151.Using the information below, compute the raw materials inventory turnover:
Raw Materials Used$121,600
Beginning Raw Materials Inventory$18,000
Ending Raw Materials Inventory$20,200
A. 6.76.
B. 6.02.
C. 54.0.
D. 60.6.
E. 6.37.
152.Using the information below, compute the Days' sales in raw materials inventory:
Raw Materials Used$121,600
Beginning Raw Materials Inventory$18,000
Ending Raw Materials Inventory$20,200
A. 6.76.
B. 6.02.
C. 54.0.
D. 60.6.
E. 6.37.
153.Just-in-time manufacturing techniques can be useful in _____________ days' sales in raw materials inventory.
A. keeping constant
B. changing upward
C. adding to
D. lowering
E. increasing
154.Which of the following statements is true regarding product and period costs?
A. Office salaries expense and factory maintenance are both product costs.
B. Office rent is a product cost and supervisors' salaries expense is a period cost.
C. Factory rent is a product cost and advertising expense is a period cost.
D. Delivery expense is a product cost and indirect materials is a period cost.
E. Sales commissions and indirect labor are both period costs.
