Question :
11) Using the following information find the unknown amounts. Assume : 1211947
11) Using the following information find the unknown amounts. Assume each set of information is an independent case.
a.Merchandise InventoryPurchases$210,000
Cost of goods sold223,000
Beginning balance41,000
Ending balance?
b.Direct MaterialsBeginning balance$ 7,000
Ending balance14,000
Purchases48,000
Direct materials used?
c.Work-in-process InventoryEnding balance$ 22,000
Cost of goods manufactured21,000
Beginning balance8,000
Current manufacturing costs?
d.Finished Goods InventoryCost of goods manufactured$62,000
Ending balance20,000
Cost of goods sold61,000
Beginning balance?
12) Each of the following items pertains to one of these companies: Bedell Electronics (a manufacturing company), Gregory Food Retailers (a merchandising company), and Larson Real Estate (a service sector company). Classify each item as either inventoriable (I) costs or period (P) costs.
inventoriable (I) costs or period (P) costs
a.
Salary of Bedell Electronics president
b.
Depreciation on Bedell Electronics assembly equipment
c.
Salaries of Bedell’s assembly line workers
d.
Purchase of frozen food for sale to customers by Gregory Food Retailers
e.
Salaries of frozen food personnel at Gregory Food Retailing
f.
Depreciation on freezers at Gregory Food Retailing
g.
Salary of a receptionist at Larson Real Estate
h.
Depreciation on a computer at Larson Real Estate
i.
Salary of a real estate agent at Larson Real Estate
Answer:
13) For last year, Wampum Enterprises reported revenues of $420,000, cost of goods sold of $108,000, cost of goods manufactured of $101,000, and total operating costs of $70,000. Operating income for that year was ________.
A) $319,000
B) $312,000
C) $249,000
D) $242,000
14) Prime costs include ________.
A) direct materials and direct manufacturing labor costs
B) direct manufacturing labor and manufacturing overhead costs
C) direct materials and manufacturing overhead costs
D) only direct materials
15) Leslie Manufacturing reported the following:
Revenue
$450,000
Beginning inventory of direct materials, January 1, 2015
20,000
Purchases of direct materials
156,000
Ending inventory of direct materials, December 31, 2015
18,000
Direct manufacturing labor
21,000
Indirect manufacturing costs
42,000
Beginning inventory of finished goods, January 1, 2015
40,000
Cost of goods manufactured
114,000
Ending inventory of finished goods, December 31, 2015
45,000
Operating costs
150,000
What is Leslie’s operating income?
A) $186,000
B) $128,000
C) $177,000
D) $191,000
16) Conversion costs include ________.
A) direct materials and direct manufacturing labor costs
B) direct manufacturing labor and manufacturing overhead costs
C) direct materials and manufacturing overhead costs
D) only direct materials
17) Total manufacturing costs equal ________.
A) direct materials plus prime costs
B) direct materials plus conversion costs
C) direct manufacturing labor costs plus sunk costs
D) direct manufacturing labor costs plus conversion costs
18) The following information pertains to the Emerald Corp:
Beginning work-in-process inventory$ 75,000
Ending work-in-process inventory85,000
Beginning finished goods inventory175,000
Ending finished goods inventory200,000
Cost of goods manufactured1,200,000
What is cost of goods sold?
A) $1,210,000
B) $1,175,000
C) $1,185,000
D) $1,225,000
19) The following information pertains to Max Corporation:
Beginning work-in-process inventory$ 20,000
Ending work-in-process inventory23,000
Beginning finished goods inventory36,000
Ending finished goods inventory34,000
Cost of goods manufactured246,000
Sales300,000
What is the gross profit margin earned by the company?
A) $52,000
B) $50,000
C) $48,500
D) $53,500
Answer the following questions using the information below:
Beginning finished goods, 1/1/2015$ 92,000
Ending finished goods, 12/31/201575,000
Cost of goods sold300,000
Sales revenue450,000
Operating expenses95,000
20) What is the cost of goods manufactured for 2015?
A) $285,000
B) $277,000
C) $283,000
D) $350,000
