1. Tulsa Company, (a trading company) has the following data for the year ended December 31, 2016: (Adapted CPA)

shopping	ps	450.000
Initial inventory		170.000
running out of inventory		210,000
Loaded		50,000
load output		75,000

What is the cost of goods sold for the year?

2. A company had beginning inventories as follows: direct materials, $300; Work in progress, $500; Finished goods, $700. It had ending inventories as follows: Direct Materials, $400; Work in progress, $600; Finished goods, $800. Material purchases (net including freight) were $1,400, direct labor $1,500, and manufacturing overhead $1,600. What is the cost of goods sold for the period?

3. Vegas Company has the following unit costs:

Variable manufacturing overhead	ps	25
Direct materials		20
Direct labour		19
Fixed manufacturing costs		12
Variable and administrative marketing		7

Vegas produced and sold 10,000 units. If the product sells for $100, what is the gross margin?

4. Gardner Corporation makes skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below.

Sales				ps	1,500,000
Cost of sales:
direct material	ps	250.000
Direct labour		150.000
Variable Overhead		75,000
Fixed overhead		100,000			575.000
Gross profit				ps	925,000
Sales and G&A
Variable		200,000
Fixed		250.000			450.000
operating income				ps	475.000

The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:

 5. Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below.

Sales				ps	3,500,000
Cost of sales:
direct material	ps	500,000
Direct labour		250.000
Variable Overhead		275.000
Fixed overhead		600.000			1.625.000
Gross profit				ps	1,875,000
Sales and General and Admin. Exp.
Variable		750.000
Fixed		250.000			1,000,000
operating income				ps	875,000

The contribution margin ratio for the current year is:

6.  For case (B) above, what is the ending balance (EB)?

	Case (A)				Case (B)				Case (C)
Opening balance (BB)		64,800			ps	59,840				?
Final balance (EB)		61,300				?				13,800
Transferred in (IT)		189,100				79,530				65,200
Transferred Out (TO)		?				76,420				67,300

7.  Fortify, Inc. uses a predetermined manufacturing overhead rate based on direct labor hours to apply its product overhead costs to jobs. The following information has been collected for the previous year:

Direct materials	ps	150.000
Direct labour		200,000
Sales commissions		100,000
indirect work		50,000
Office equipment rental		25,000
Depreciation — factory building		75,000
Utilities — factory		125,000

Fortify used 25,000 direct labor hours and 50,000 machine hours during the prior year. What is the default overhead rate per direct labor hour?

8. The following direct labor information refers to the manufacture of the Scour product:

Time required to complete a unit		2	direct labor hours
Number of direct workers		50
Number of productive hours per week, per worker		40
weekly salary per worker	ps	500
Employee benefits treated as direct labor costs		20	% of salaries

What is the standard direct labor cost per unit of Scour product? (adapted to CPA)

9. Morton Inc. has provided the following data for the month of November. The balance in the finished goods inventory account at the beginning of the month was $49,000 and at the end of the month it was $45,000. The cost of goods manufactured for the month was $226,000. The actual manufacturing overhead incurred was $74,000 and the manufacturing overhead applied to work in process was $70,000. The adjusted cost of goods sold that would appear on the November income statement is:

10. Pigot Corporation uses per-job costing and has two production departments, M and A. Budgeted manufacturing costs for the year are as follows:

	Department M			Department A
Direct materials	ps	700,000		ps	100,000
Direct labour		200,000			800.000
Factory overhead		600.000			400.000

The actual direct material and direct labor costs charged to the job. No. 432 during the year were the following:

direct material				ps	25,000
Direct labour:
Department M	ps	8,000
Department A		12,000			20,000

Pigot applies manufacturing overhead to production orders on a direct labor cost basis using predetermined departmental rates at the beginning of the year based on the annual budget. The total cost associated with the job. The number 432 for the year should be:

Answer rating: 100% (QA)

1 To calculate the cost of goods sold for the year we need to use the following formula Cost of Goods Sold Beginning Inventory Purchases Ending Inventory Substituting the values from the question we g... View the full answer