41. In a traditional manufacturing environment, as the cost of goods sold account increases, which account is most likely decreasing? A. Work in process inventoryB. Finished goods inventoryC. Raw materials inventoryD. Cash
42. Brenda’s Bakery has the following information available for October:
Beginning Ending
Raw materials$ 4,000 $ 2,000
Work-in-process32,000 17,000
Finished goods5,000 3,000
Cost of goods manufactured 88,000
Cost of goods sold 90,000
Direct labor costs 35,000
Factory rent and depreciation 10,000
Selling expenses 3,000
How much raw material was purchased in October? A. $23,000B. $25,000C. $26,000D. $28,000
43. Johnson Manufacturing has the following selected information available for the year:
Direct material purchased$ 40,000
Direct material used45,000
Direct labor incurred75,000
Manufacturing overhead incurred50,000
Cost of goods manufactured100,000
In addition, the cost of the finished goods inventory increased by $10,000 from the beginning to the end of the year. Cost of goods sold for the year is: A. $ 80,000.B. $170,000.C. $ 90,000.D. $110,000.
44. Franklin Street ManufacturingFranklin Street Manufacturing has the following cost information available for 2011:
Direct materials used$10,000
Direct labor costs25,000
Factory overhead20,000
Marketing expenses4,000
Administrative expenses6,000
20,000 units were produced during the year out of which 19,000 units were sold for $10 each. Refer to the Franklin Street Manufacturing information above. What is cost of goods sold for 2011? A. $55,000B. $52,250C. $61,750D. $65,000
45. Franklin Street ManufacturingFranklin Street Manufacturing has the following cost information available for 2011:
Direct materials used$10,000
Direct labor costs25,000
Factory overhead20,000
Marketing expenses4,000
Administrative expenses6,000
20,000 units were produced during the year out of which 19,000 units were sold for $10 each. Refer to the Franklin Street Manufacturing information above. What is net operating income for 2011? (Ignore taxes) A. $127,750B. $137,750C. $125,000D. $128,250
46. Which of the following increases the work in process account? A. Cost of goods soldB. Sales commissionC. Administrative costsD. Raw material used
47. Which of the following decreases the work in process account? A. Transferring raw materials to work in process account.B. Transferring cost of goods manufactured from work in process account.C. Transferring cost of goods sold from work in process account.D. Transferring raw materials from work in process account.
48. Product costs that are transferred into finished goods inventory are called: A. cost of goods manufactured.B. cost of goods sold.C. period costs.D. raw materials used.
49. Product costs that are transferred out of finished goods are called: A. work in process.B. cost of goods manufactured.C. cost of goods sold.D. period costs.
50. Which of the following types of companies would not have the following cost pattern?Raw materials ® Work-in-process ® Finished goods ® Cost of goods sold A. Tire manufacturerB. Automotive manufacturerC. Retailer / merchandiserD. Construction company
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