Question :
98. Cost of goods manufactured calculated as follows:
a.Beginning WIP + : 1311589
98. Cost of goods manufactured is calculated as follows:
a.Beginning WIP + direct materials used + direct labor + manufacturing overhead + ending WIP.
b.Direct materials used + direct labor + manufacturing overhead – beginning WIP + ending WIP.
c.Beginning WIP + direct materials used + direct labor + manufacturing overhead – ending WIP.
d.Direct materials used + direct labor + manufacturing overhead – ending WIP – beginning WIP.
99. If the amount of “Cost of goods manufactured” during a period exceeds the amount of “Total manufacturing costs” for the period, then
a.ending work in process inventory is greater than or equal to the amount of the beginning work in process inventory.
b.ending work in process is greater than the amount of the beginning work in process inventory.
c.ending work in process is equal to the cost of goods manufactured.
d.ending work in process is less than the amount of the beginning work in process inventory.
100.On the costs of goods manufactured schedule, depreciation on factory equipment
a.is not listed because it is included with Depreciation Expense on the income statement.
b.appears in the manufacturing overhead section.
c.is not listed because it is not a product cost.
d.is not an inventoriable cost.
101.On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)
a.addition to raw materials purchases.
b.addition to raw materials available for use.
c.subtraction from raw materials available for use.
d.subtraction from raw materials purchases.
102.Dolan Company’s accounting records reflect the following inventories:
Dec. 31, 2013Dec. 31, 2012
Raw materials inventory$310,000$260,000
Work in process inventory300,000160,000
Finished goods inventory190,000150,000
During 2013, $600,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
The total raw materials available for use during 2013 for Dolan Company is
a.$910,000.
b.$460,000.
c.$550,000.
d.$860,000.
103.Dolan Company’s accounting records reflect the following inventories:
Dec. 31, 2013Dec. 31, 2012
Raw materials inventory$310,000$260,000
Work in process inventory300,000160,000
Finished goods inventory190,000150,000
During 2013, $600,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
Dolan Company’s total manufacturing costs incurred in 2013 amounted to
a.$1,530,000.
b.$1,490,000.
c.$1,390,000.
d.$1,580,000.
104.Dolan Company’s accounting records reflect the following inventories:
Dec. 31, 2013Dec. 31, 2012
Raw materials inventory$310,000$260,000
Work in process inventory300,000160,000
Finished goods inventory190,000150,000
MC 104.(Cont.)
During 2013, $600,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
If Dolan Company’s cost of goods manufactured for 2013 amounted to $1,390,000, its cost of goods sold for the year is
a.$1,500,000.
b.$1,250,000.
c.$1,350,000.
d.$1,430,000.
105.What is work in process inventory generally described as?
a.Costs applicable to units that have been started in production but are only partially completed
b.Costs associated with the end stage of manufacturing that are almost always complete and ready for customers
c.Costs strictly associated with direct labor
d.Beginning stage production costs associated with labor costs dealing with bringing in raw materials from the shipping docks
106.Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $816,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Company’s cost of goods sold for the year is
a.$804,000.
b.$828,000.
c.$776,000.
d.$552,000.
107.Laflin Company reported the following year-end information:
Beginning work in process inventory $1,080,000
Beginning raw materials inventory300,000
Ending work in process inventory900,000
Ending raw materials inventory480,000
Raw materials purchased960,000
Direct labor800,000
Manufacturing overhead720,000
Laflin Company’s cost of goods manufactured for the year is
a.$2,300,000.
b.$2,480,000.
c.$2,120,000.
d.$2,660,000.
