ACC105 - Unit 1 Study Guide Student: _Michael Garcia - orecbur 1. The sum of all costs of manufacturing costs except direct materials is called manufacturing overhead True Falso direct material Direct Ickou 2. Prime post is the sum of direct labor and manufacturing overhead. True False Product Cost Inventoriable costs 3. Period costs are also known as inventoriable costs. True False 4. The cost of goods sold of a manufacturing company equals beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory. 84 True False + Neth ding cobs Mapfectond 5. As activity increases within the relevant range, fixed costs remain constant on a per unit basis. True False 6. All of the following are examples of opportunity costs: salary give up to start a business, rental income given up when you live in a house you own; interest income that could be earned on money spent for a True False 7. The cost of the cushions that are used to manufacture sofas is best described as a A. manufacturing overhead cost. B. period cost. C variable cost. - Oired mats direct labore D. conversion cost. 9. Materials used in the operation of a factory, such as cleaning supplies, that are not an integral part of the final product should be classified as: A. direct materials. B. a period cost. C. administrative expense. manufacturing overhead. - Indirect meters 10. Direct costs: A. are incurred to benefit a particular accounting period. B. are incurred due to a specific decision can be easily traced to a particular cost object D. are the variable costs of producing a product. 11. Which of the following is NOT a period cost? A Monthly depreciation of the equipment in a fitness room used by factory workers B. Salary of a billing clerk. C. Insurance on a company showroom, where current and potential customers can view new products, D. Cost of a seminar conceming tax law updates that was attended by the company's controller 12. Factory supplies in a manufacturing plant are most likely: A. sunk costs. B. period costs C variable costs. D. excluded from product costs. 13. Inventoriable (i... product) costs that have become expenses can be found in: A. period costs. B. selling expenses. cost of goods sold. D. administrative expenses. 14. Which of the following statements about product costs is true? A. Product costs are deducted from revenue when the production process is completed. B. Product costs are deducted from revenue as expenditures are made. Product costs associated with unsold finished goods and work in process appear on the balance sheet as assets. D. Product costs appear on financial statements only when products are sold. 15. Which of the following is an example of a period cost? A. Fabric used to produce men's pants. B) Advertising cost for a new product campaign. C. Factory supervisor's salary. D. Monthly depreciation of production equipment. 16. Desco Electronics, Inc, manufactures car radios. The direct material cost assigned to car radios that Desco started during the period but did not fully complete would be found in the ending balance of A. raw materials inventory. B. work in process inventory. C. finished goods inventory. D. both raw materials inventory and work in process inventory. 17. Within the relevant range, as the number of units produced increases: A. the variable cost per unit remains the same. B. fixed costs in total remain the same. C. variable costs increase in total. D. All of these III 18. When the level of activity decreases within the relevant range, the fixed cost per unit will: A decrease increase. C. remain the same D. The effect cannot be predicted. 19. The distinction between indirect and direct costs depends on: A. whether a cost differs between alternatives B. whether a cost is variable or fixed C. whether a cost is a product or a period cost. Dwhether a cost can be easily traced to the cost object under consideration 420. Which of the following statements concerning direct and indirect costs is NOT true? A. Whether a particular cost is classified as direct or indirect does not depend on the cost object. B. A direct cost is one that can be easily traced to the particular cost object. The factory manager's salary would be classified as an indirect cost of producing one unit of product D. A particular cost may be direct or indirect, depending on the cost object. 21. Cobra Mining Company spent $200 million five years ago to develop underground mining and milling operations in a remote area of a western state, Metals prices have since declined precipitously and the company is considering abandoning the operation. The term that would best describe the $200 million expenditure when considering the abandonment decision is: sunk cost. B. variable cost. C. differential cost. D. opportunity cost. 22. A sunk cost is: A. a cost that is planned to be incurred in the near future. B. irrelevant for decision making C. a cost connected with drilling for oil. D. affected by changes in the level of activity 23. The following costs were incurred in July 25000 Directa Direct labor Manufacturing overhead Selling e nses... $35.000 SI 3.000 $15,000 $14,000 $30,000 +13ooo 48000 Prime costs during the month totaled: S48,000 B. $28,000 C. $107.000 D. 563.000 24. During the month of July, direct labor cost totaled $12,000 and direct labor cost was 30% of prime cost. If total manufacturing costs during July were $86,000, the manufacturing overhead was: As46,000 B$40,000 - 286.00 C. $28,000 Roco +380oo tx=860 D. $74,000 Y Yo 25. Shown below are a number of costs incurred last year at Mecca Publishing Co., a manufacturer of elementary school textbooks: $500 Solvents and cleaners used by the custodians to clean the textbook printing presses. Depreciation on the automobiles used by sales representatives... Fire insurance on factory building Shipping costs on textbooks sold. $4,200 $2,000 $3,700 What is the total of the manufacturing overhead costs above? A. $500 B $2,500 C. $6.200 D. $6,700 Xeo so 23000 1 3400 26. Consider the following costs: 12 ovo $13,000 $12.000 Direct materials Depreciation on factory equipment Factory janitor's salary Direct labow .... Utilities for factory Selling expenses....... Production supervisor's salary.. Administrative e ne.... $28.000 $9,000 $16.000 $34.000 $21.000 What is the total amount of manufacturing overhead included above? CA. $78,000 B. $139,000 C. $44,000 D. $37,000 27. Consider the following costs incurred in a recent period: 33.000 $12.000 Factory Direct labow 120co 16000 9000 528.000 $9,000 $16.000 $14.000 $21.00 Prohatice wupervisor's salary... Admite S1 50,475 Beginning bed poede inventory Endhed goods wory Sales What was the total amount of the period costs listed above for the period? A. $78,000 B. $71,000 C. $46,000 $37,000 28. The following data are for a recent period's operations Scks-coor- Gre g 400000 -cobs Roove C065 = 2800g Beg Konstad troos M-Ending : cogs The cost of goods manufactured was: A $115,275 15ours + coost-145756=28000 B. $284,725 C. $275,275 Cotsu = $275275 D. $124.725 $400.000 $120,000 29. The following data pertain to a recent period's operations: $12.000 TOO Beinnig finished goods inventory...... Cow of p a red Ending finished goods inventory Cow of good old Grossmar ... Administrative and selling expenses Netice of Sales $10.000 Net operating income was: A SI8.000 B. 510,000 C. $14,000 D. $46,000 30. The cost of goods manufactured for October at Toule Manufacturing Corporation was $907,000. The following changes occurred in Toule inventory accounts during October: Decrease in ru r als inventory... Decrease is work in process inventory.... Irind goods inveniory. 324.000 17,000 What was Toule's cost of goods sold for October? A $869,000 B. 5886,000 C. $928,000 D. $945,000 31. Haala Inc. is a merchandising company, Last month the company's cost of goods sold was $68,000 The company's beginning merchandise inventory was $11,000 and its ending merchandise inventory was $17,000. What was the total amount of the company's merchandise purchases for the month? A. $96,000 B. $62,000 C. $68.000 D. $74,000 32. At the beginning of the most recent month's operations, finished goods inventory was $30,000. The cost of goods manufactured was 5326,000 and ending finished goods inventory was 542,000. What was the cost of goods sold for the month? A $320,000 B. $338,000 C. $314,000. D. Cannot be calculated. 33. The following data have been provided for the most recent month's operations: Die materiale Direct labor... Manfringerhead Totalanfacturing costs.. Beginning work in process inventory Ending work in proces inventory Cost of goods ma tured ... The beginning work in process inventory is A. $11,000 B. $42.000 C. 553.000 D. 537,000 By: 2015 34. During the month of April, LTP Company incurred $30,000 of manufacturing overhead, $40,000 of direct labor, and purchased $25,000 of raw materials. Between the beginning and the end of the month, the raw materials and work in process inventories decreased by $4,000 and $3,000, respectively. The total manufacturing costs used in the computation of cost of goods manufactured during the month of April A $88.000 B. $91.000 C. 599,000 D. $102,000 35. The following inventory balances relate to Komiza Manufacturing Corporation at the beginning and end of the year Raw materials Work in process Finished goods Depe nding S10,000 $21.000 $5,000 $3,000 $41,000 $48.000 Komiza's cost of goods available for sale was $622,000. What was komiza's cost of goods manufactured? A. $581.000 B. $615,000 C. S629.000 D. S663,000 36. A company has provided the following cost data for its most recent accounting period: $15.000 Direct labor Administrative expenses Manufacturing overhoad Direct materials Selling expenses 5200,000 $22,000 What was the cost of goods manufactured for the period? Assume there were no beginning or ending inventories A. $303,000 B. $323.000 C. $338,000 D. $360,000 37. Last year, Vashanda Corporation incurred the following costs to produce 18,000 units: Cost of raw materials used... Property taxes on fitory building ---... 586.400 $9.000 What should be the cost per unit for the above costs if 20,000 units of product are produced next year? Raw materials Property las 5432 30.45 5432 30 30 54.80 54.30 $0.50 38. A mattress manufacturer has provided the following cost data. The cost of fabric, foam, springs, and lumber is $68,000. The cost of indirect materials is $21,000. Labor cost of assembly workers is $52,000 and for production supervisors is $14,000. How much indirect cost is included in the above costs? A. $21,000 B. $35.000 C. $89,000 D. S103,000 Mendoza, Inc, manufactures and sells aluminum dishes for camping and outdoor enthusiasts through a mail order catalog operation. Large rectangular sheets of aluminum are purchased by Mendoza. These sheets are cut down into smaller squares and are then fed into a machine where they are trimmed down into a circular shape. These aluminum circles are then fed into a stamping machine where they are formed into plates and bowls. After production, the dishes are shipped to warehouses where they are packed and then shipped to customers. 39. Which of the following terms could be used to correctly describe the cost of the aluminum sheets? A fixed cost B. period cost C. direct cost D. conversion cost 40. Which of the following terms could be used to correctly describe the cost of electricity used to run the stamping machine? A. variable cost B. indirect cost C. manufacturing overhead cost D. All of these A partial listing of costs incurred at Archut Corporation during September appears below: SI13.000 $5.000 $81.000 525.000 Direct materials Utilities, frutory.. Administrative salaries.. Indirest labor Sales constions - Depreciation of production equipment Depreciation of administrative equipment... Direct labor Advertising $20.000 530.000 $129.000 S135.000 41. The total of the manufacturing overhead costs listed above for September is: A. $586,000 B. $50,000 C. S292,000 D. $30,000 42. The total of the period costs listed above for September is: A. $294.000 B. $344,000 C. $292,000 D. $50,000 A partial listing of costs incurred during March at Febbo Corporation appears below: M Factory wpis wandis Direct mangas Sales salles Factory d ecision Corporated building Indirect labor Mark $10.000 525,000 43. The total of the manufacturing overhead costs listed above for March is: A. $68,000 B. $35,000 C. $516,000 D. $293.000 The following data pertain to Graham Company's operations in May: May 1 May 31 57.000 $12.000 $15.000 $20,000 Raw materials inventory... Finished poede inventory Other data Raw materials used $10.000 R Manuturing overhead coal.... oma Gross Margin 10,000 S000 560.000 44. The ending materials inventory was A. $5,000 B. $10,000 C. $15,000 D. $20,000 45. The direct labor cost for May was: A $35.000 B. $40,000 C. $30,000 D. $25,000 Demeglio Corporation reported the following data for the month of September: Inne Raw materials.... Beginning $30,000 $23,000 $32.000 Ending $34,000 $2.000 $35.000 Finished goods 46. If the company transferred $222,000 of completed goods from work in process to finished goods inventory during September, what was the cost of goods sold for the month? A $219.000 B. $225,000 C 5222.000 D. $221,000 Boardman Company reported the following data for the month of January: Twente Raw materials. $32,000 $31,000 $18,000 $12,000 $30,000 $35,000 5210,000 Dina labor costs Ma turing overhead costs...... Selling $25,000 47. Boardman Company's total conversion cost for January would be: A. S110,000 B. S170,000 C. $135.000 D. $130,000 Yokum Company has provided the following data for the month of August: $8,000 Raw materials inventory.... Work in process inventory Finished goods inventory Other Data $80.000 Manufacturing overhead costs Duroot labor...... Purchase of raw materials.. Advenc Cost of goods matured i als used in production Selling e n R 50. The beginning work in process inventory was: A. $6,000 B. $9.000 C. $15,000 D. $2,000 The following data (in thousands of dollars) have been taken from the accounting records of Karling Corporation for the just completed year. M Raw materials investory beginning Raw materials inventory, ending Purchases of ww materials.... Dere her aturing overhead Administrative e Selliagens Work in process inventory, beginning Work in process inventory, ending Finished goods im entory, lining.. Finished poode inventory, ending 51. The cost of the raw materials used in production during the year (in thousands of dollars) was: A S190 B. $90 C. $150 D. $160 52. The cost of goods sold for the year in thousands of dollars) was: A. 5700 B $500 C. $660 D. $580 Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device 53. The salary that Mark cars at his present employi A. a variable cost B. a fixed cost Ca product cost D. an opportunity cost 54. The cost of the raw materials that will be used in manufacturing the computer board is A. asunk cost B. a fixed cost Ca period cost D. a variable cost use the manufacturing facility are 55. Property taxes on the building that will be purchased to A a product cost B a variable cost C. an opportunity cost D. a period cost Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes, Shown below are some of the costs incurred by Vignana for last year Costo das die product Wapes paid to the workers who post the figurines 56500 0.000 Cost of Junkmal advertising $47.000 A. SO 56. What is the total of the inventoriable (product) costs above? B. 569,000 C. $155,000 D. S159,000 Gaeddert Corporation reported the following data for the month of July: ewwer: Raw materials.... Work in process Finished goods Begir $36.000 $13,000 $36.000 Ending $27.000 $16.000 $42.000 Additional information $250.000 $76.000 Raw materials purchases Direct labor cost... Mansacturing overhead coat.. Selling expense. Administrative expense $81.000 $24,000 57. The total manufacturing cost for July was: A. $190,000 B. $114,000 C. $199,000 D. $81,000 58. The cost of goods sold for July was: A. $244,000 B. $138,000 C. $190,000 D. $202,000 Management of Jarva Corporation has asked your help as an intern in preparing some key reports for May. The company started the month with raw materials inventories of $29,000. During the month, the company made raw materials purchases amounting to $72,000. At the end of the month, raw materials inventories totaled $33,000. Direct labor cost was $36,000 and manufacturing overhead cost was $57,000. The beginning balance in the work in process account was $24,000 and the ending balance was $16,000. The beginning balance in the finished goods account was $35,000 and the ending balance was $46,000 Sales totaled $220,000. Selling expense was $14,000 and administrative expense was $36,000. 59. The total manufacturing cost for May was! A $93.000 B. $57,000 C. $165,000 D. $161.000 60. The cost of goods sold for May was: A $107.000 B. $180.000 C. $158,000 D. $209,000 The following selected data for March were taken from Rubenstein Company's financial statements: Cost of poods available for sale Men ing overhead Cost o pode matured 5.000 $20.000 $31.000 $10.000 Direct materials used Sales Seagandwirte pe ... S105,000 $30.000 Works o very beginning 61. The gross margin was A $55.000 B. $54,000 C. 550.000 D. $40.000 62. The ending work in process inventory was: A $4,000 B. 58.000 C. $10,000 D. SO Dauenhauer Corporation reported the following data for the month of April Work in process Finished goods $27,000 S10,000 S18000 $20,000 $24,000 $28.000 Atal information Sales Raw materials purchases 5.230.000 $76.000 M wig van A ttive pe 63. The cost of goods manufactured for April was. A $160,000 B. $174,000 C. $167.000 D. $188,000 64. The net operating income for April was A. $60,000 B. $15,000 C. $12,000 D. 591,000 Juart Corporation reported the following data for the month of December $25,000 $22.000 $54.000 Finished poodie 38.000 $21.000 556.000 Additional informatie Sales $230,000 Der where Manufacturing overhead cost $15.000 $ 65. The net operating income for December was: A. $23,000 B. $83,000 C. $88,000 D. $10,000 Steenbergen Corporation reported the following data for the month of June: Raw materials... Work in pro 339,000 $24,000 528,000 $32,000 120.000 10,000 Additional information: Raw materials purchases Direct labor cool..... Manuturing over $50,000 $44.000 STO Administrative expense. $27,000 66. The net operating income for June was: A. $37.000 B. $87,000 C. $79,000 D. $31,000 Management of Thede Corporation has asked your help as an intern in preparing some key reports for July. The beginning balance in the raw materials inventory account was $29,000. During the month, the company made raw materials purchases amounting to $55,000. At the end of the month, the balance in the raw materials inventory account was $37,000. Direct labor cost was $41,000 and manufacturing overhead cost was 561,000. The beginning balance in the work in process account was $22,000 and the ending balance was $23,000. The beginning balance in the finished goods account was $42.000 and the ending balance was $55,000. Sales totaled $230,000. Selling expense was $13,000 and administrative expense was $32.000. 67. The cost of goods manufactured for July was: A $149,000 B. S150,000 C. $148,000 D. $157,000 68. The net operating income for July was: A $28,000 B. $95,000 C. $50,000 D. 583.000 The CFO of Claussen Corporation has provided the following data for June. The beginning balance in the raw materials inventory account was $38,000. During the month, the company made raw materials purchases amounting to $53,000. At the end of the month, the balance in the raw materials inventory account was $27.000. Direct labor cost was $33,000 and manufacturing overhead cost was $74,000. The beginning balance in the work in process account was $24,000 and the ending balance was $23,000. The beginning balance in the finished goods account was $57,000 and the ending balance was $55,000. Sales totaled $290,000. Selling expense was $17,000 and administrative expense was $43,000. 69. The net operating income for June was: A. S56,000 B. $123,000 C. $70,000 D. $116,000 Downin Corporation has provided the following data for May. The beginning balance in the raw materials inventory account was $34,000. During the month, the company made raw materials purchases amounting to $65,000. At the end of the month, the balance in the raw materials inventory account was $29.000 Direct labor cost was $30,000 and manufacturing overhead cost was $56,000. The beginning balance in the work in process account was $15,000 and the ending balance was $16,000. The beginning balance in the finished goods account was $41,000 and the ending balance was $57,000. Sales totaled $220,000. Selling expense was $21,000 and administrative expense was $42,000. 70. The net operating income for May was: A. $71,000 B. $81,000 C. $6,000 D. $18,000 ACC105 - Unit 1 Study Guide Student: _Michael Garcia - orecbur 1. The sum of all costs of manufacturing costs except direct materials is called manufacturing overhead True Falso direct material Direct Ickou 2. Prime post is the sum of direct labor and manufacturing overhead. True False Product Cost Inventoriable costs 3. Period costs are also known as inventoriable costs. True False 4. The cost of goods sold of a manufacturing company equals beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory. 84 True False + Neth ding cobs Mapfectond 5. As activity increases within the relevant range, fixed costs remain constant on a per unit basis. True False 6. All of the following are examples of opportunity costs: salary give up to start a business, rental income given up when you live in a house you own; interest income that could be earned on money spent for a True False 7. The cost of the cushions that are used to manufacture sofas is best described as a A. manufacturing overhead cost. B. period cost. C variable cost. - Oired mats direct labore D. conversion cost. 9. Materials used in the operation of a factory, such as cleaning supplies, that are not an integral part of the final product should be classified as: A. direct materials. B. a period cost. C. administrative expense. manufacturing overhead. - Indirect meters 10. Direct costs: A. are incurred to benefit a particular accounting period. B. are incurred due to a specific decision can be easily traced to a particular cost object D. are the variable costs of producing a product. 11. Which of the following is NOT a period cost? A Monthly depreciation of the equipment in a fitness room used by factory workers B. Salary of a billing clerk. C. Insurance on a company showroom, where current and potential customers can view new products, D. Cost of a seminar conceming tax law updates that was attended by the company's controller 12. Factory supplies in a manufacturing plant are most likely: A. sunk costs. B. period costs C variable costs. D. excluded from product costs. 13. Inventoriable (i... product) costs that have become expenses can be found in: A. period costs. B. selling expenses. cost of goods sold. D. administrative expenses. 14. Which of the following statements about product costs is true? A. Product costs are deducted from revenue when the production process is completed. B. Product costs are deducted from revenue as expenditures are made. Product costs associated with unsold finished goods and work in process appear on the balance sheet as assets. D. Product costs appear on financial statements only when products are sold. 15. Which of the following is an example of a period cost? A. Fabric used to produce men's pants. B) Advertising cost for a new product campaign. C. Factory supervisor's salary. D. Monthly depreciation of production equipment. 16. Desco Electronics, Inc, manufactures car radios. The direct material cost assigned to car radios that Desco started during the period but did not fully complete would be found in the ending balance of A. raw materials inventory. B. work in process inventory. C. finished goods inventory. D. both raw materials inventory and work in process inventory. 17. Within the relevant range, as the number of units produced increases: A. the variable cost per unit remains the same. B. fixed costs in total remain the same. C. variable costs increase in total. D. All of these III 18. When the level of activity decreases within the relevant range, the fixed cost per unit will: A decrease increase. C. remain the same D. The effect cannot be predicted. 19. The distinction between indirect and direct costs depends on: A. whether a cost differs between alternatives B. whether a cost is variable or fixed C. whether a cost is a product or a period cost. Dwhether a cost can be easily traced to the cost object under consideration 420. Which of the following statements concerning direct and indirect costs is NOT true? A. Whether a particular cost is classified as direct or indirect does not depend on the cost object. B. A direct cost is one that can be easily traced to the particular cost object. The factory manager's salary would be classified as an indirect cost of producing one unit of product D. A particular cost may be direct or indirect, depending on the cost object. 21. Cobra Mining Company spent $200 million five years ago to develop underground mining and milling operations in a remote area of a western state, Metals prices have since declined precipitously and the company is considering abandoning the operation. The term that would best describe the $200 million expenditure when considering the abandonment decision is: sunk cost. B. variable cost. C. differential cost. D. opportunity cost. 22. A sunk cost is: A. a cost that is planned to be incurred in the near future. B. irrelevant for decision making C. a cost connected with drilling for oil. D. affected by changes in the level of activity 23. The following costs were incurred in July 25000 Directa Direct labor Manufacturing overhead Selling e nses... $35.000 SI 3.000 $15,000 $14,000 $30,000 +13ooo 48000 Prime costs during the month totaled: S48,000 B. $28,000 C. $107.000 D. 563.000 24. During the month of July, direct labor cost totaled $12,000 and direct labor cost was 30% of prime cost. If total manufacturing costs during July were $86,000, the manufacturing overhead was: As46,000 B$40,000 - 286.00 C. $28,000 Roco +380oo tx=860 D. $74,000 Y Yo 25. Shown below are a number of costs incurred last year at Mecca Publishing Co., a manufacturer of elementary school textbooks: $500 Solvents and cleaners used by the custodians to clean the textbook printing presses. Depreciation on the automobiles used by sales representatives... Fire insurance on factory building Shipping costs on textbooks sold. $4,200 $2,000 $3,700 What is the total of the manufacturing overhead costs above? A. $500 B $2,500 C. $6.200 D. $6,700 Xeo so 23000 1 3400 26. Consider the following costs: 12 ovo $13,000 $12.000 Direct materials Depreciation on factory equipment Factory janitor's salary Direct labow .... Utilities for factory Selling expenses....... Production supervisor's salary.. Administrative e ne.... $28.000 $9,000 $16.000 $34.000 $21.000 What is the total amount of manufacturing overhead included above? CA. $78,000 B. $139,000 C. $44,000 D. $37,000 27. Consider the following costs incurred in a recent period: 33.000 $12.000 Factory Direct labow 120co 16000 9000 528.000 $9,000 $16.000 $14.000 $21.00 Prohatice wupervisor's salary... Admite S1 50,475 Beginning bed poede inventory Endhed goods wory Sales What was the total amount of the period costs listed above for the period? A. $78,000 B. $71,000 C. $46,000 $37,000 28. The following data are for a recent period's operations Scks-coor- Gre g 400000 -cobs Roove C065 = 2800g Beg Konstad troos M-Ending : cogs The cost of goods manufactured was: A $115,275 15ours + coost-145756=28000 B. $284,725 C. $275,275 Cotsu = $275275 D. $124.725 $400.000 $120,000 29. The following data pertain to a recent period's operations: $12.000 TOO Beinnig finished goods inventory...... Cow of p a red Ending finished goods inventory Cow of good old Grossmar ... Administrative and selling expenses Netice of Sales $10.000 Net operating income was: A SI8.000 B. 510,000 C. $14,000 D. $46,000 30. The cost of goods manufactured for October at Toule Manufacturing Corporation was $907,000. The following changes occurred in Toule inventory accounts during October: Decrease in ru r als inventory... Decrease is work in process inventory.... Irind goods inveniory. 324.000 17,000 What was Toule's cost of goods sold for October? A $869,000 B. 5886,000 C. $928,000 D. $945,000 31. Haala Inc. is a merchandising company, Last month the company's cost of goods sold was $68,000 The company's beginning merchandise inventory was $11,000 and its ending merchandise inventory was $17,000. What was the total amount of the company's merchandise purchases for the month? A. $96,000 B. $62,000 C. $68.000 D. $74,000 32. At the beginning of the most recent month's operations, finished goods inventory was $30,000. The cost of goods manufactured was 5326,000 and ending finished goods inventory was 542,000. What was the cost of goods sold for the month? A $320,000 B. $338,000 C. $314,000. D. Cannot be calculated. 33. The following data have been provided for the most recent month's operations: Die materiale Direct labor... Manfringerhead Totalanfacturing costs.. Beginning work in process inventory Ending work in proces inventory Cost of goods ma tured ... The beginning work in process inventory is A. $11,000 B. $42.000 C. 553.000 D. 537,000 By: 2015 34. During the month of April, LTP Company incurred $30,000 of manufacturing overhead, $40,000 of direct labor, and purchased $25,000 of raw materials. Between the beginning and the end of the month, the raw materials and work in process inventories decreased by $4,000 and $3,000, respectively. The total manufacturing costs used in the computation of cost of goods manufactured during the month of April A $88.000 B. $91.000 C. 599,000 D. $102,000 35. The following inventory balances relate to Komiza Manufacturing Corporation at the beginning and end of the year Raw materials Work in process Finished goods Depe nding S10,000 $21.000 $5,000 $3,000 $41,000 $48.000 Komiza's cost of goods available for sale was $622,000. What was komiza's cost of goods manufactured? A. $581.000 B. $615,000 C. S629.000 D. S663,000 36. A company has provided the following cost data for its most recent accounting period: $15.000 Direct labor Administrative expenses Manufacturing overhoad Direct materials Selling expenses 5200,000 $22,000 What was the cost of goods manufactured for the period? Assume there were no beginning or ending inventories A. $303,000 B. $323.000 C. $338,000 D. $360,000 37. Last year, Vashanda Corporation incurred the following costs to produce 18,000 units: Cost of raw materials used... Property taxes on fitory building ---... 586.400 $9.000 What should be the cost per unit for the above costs if 20,000 units of product are produced next year? Raw materials Property las 5432 30.45 5432 30 30 54.80 54.30 $0.50 38. A mattress manufacturer has provided the following cost data. The cost of fabric, foam, springs, and lumber is $68,000. The cost of indirect materials is $21,000. Labor cost of assembly workers is $52,000 and for production supervisors is $14,000. How much indirect cost is included in the above costs? A. $21,000 B. $35.000 C. $89,000 D. S103,000 Mendoza, Inc, manufactures and sells aluminum dishes for camping and outdoor enthusiasts through a mail order catalog operation. Large rectangular sheets of aluminum are purchased by Mendoza. These sheets are cut down into smaller squares and are then fed into a machine where they are trimmed down into a circular shape. These aluminum circles are then fed into a stamping machine where they are formed into plates and bowls. After production, the dishes are shipped to warehouses where they are packed and then shipped to customers. 39. Which of the following terms could be used to correctly describe the cost of the aluminum sheets? A fixed cost B. period cost C. direct cost D. conversion cost 40. Which of the following terms could be used to correctly describe the cost of electricity used to run the stamping machine? A. variable cost B. indirect cost C. manufacturing overhead cost D. All of these A partial listing of costs incurred at Archut Corporation during September appears below: SI13.000 $5.000 $81.000 525.000 Direct materials Utilities, frutory.. Administrative salaries.. Indirest labor Sales constions - Depreciation of production equipment Depreciation of administrative equipment... Direct labor Advertising $20.000 530.000 $129.000 S135.000 41. The total of the manufacturing overhead costs listed above for September is: A. $586,000 B. $50,000 C. S292,000 D. $30,000 42. The total of the period costs listed above for September is: A. $294.000 B. $344,000 C. $292,000 D. $50,000 A partial listing of costs incurred during March at Febbo Corporation appears below: M Factory wpis wandis Direct mangas Sales salles Factory d ecision Corporated building Indirect labor Mark $10.000 525,000 43. The total of the manufacturing overhead costs listed above for March is: A. $68,000 B. $35,000 C. $516,000 D. $293.000 The following data pertain to Graham Company's operations in May: May 1 May 31 57.000 $12.000 $15.000 $20,000 Raw materials inventory... Finished poede inventory Other data Raw materials used $10.000 R Manuturing overhead coal.... oma Gross Margin 10,000 S000 560.000 44. The ending materials inventory was A. $5,000 B. $10,000 C. $15,000 D. $20,000 45. The direct labor cost for May was: A $35.000 B. $40,000 C. $30,000 D. $25,000 Demeglio Corporation reported the following data for the month of September: Inne Raw materials.... Beginning $30,000 $23,000 $32.000 Ending $34,000 $2.000 $35.000 Finished goods 46. If the company transferred $222,000 of completed goods from work in process to finished goods inventory during September, what was the cost of goods sold for the month? A $219.000 B. $225,000 C 5222.000 D. $221,000 Boardman Company reported the following data for the month of January: Twente Raw materials. $32,000 $31,000 $18,000 $12,000 $30,000 $35,000 5210,000 Dina labor costs Ma turing overhead costs...... Selling $25,000 47. Boardman Company's total conversion cost for January would be: A. S110,000 B. S170,000 C. $135.000 D. $130,000 Yokum Company has provided the following data for the month of August: $8,000 Raw materials inventory.... Work in process inventory Finished goods inventory Other Data $80.000 Manufacturing overhead costs Duroot labor...... Purchase of raw materials.. Advenc Cost of goods matured i als used in production Selling e n R 50. The beginning work in process inventory was: A. $6,000 B. $9.000 C. $15,000 D. $2,000 The following data (in thousands of dollars) have been taken from the accounting records of Karling Corporation for the just completed year. M Raw materials investory beginning Raw materials inventory, ending Purchases of ww materials.... Dere her aturing overhead Administrative e Selliagens Work in process inventory, beginning Work in process inventory, ending Finished goods im entory, lining.. Finished poode inventory, ending 51. The cost of the raw materials used in production during the year (in thousands of dollars) was: A S190 B. $90 C. $150 D. $160 52. The cost of goods sold for the year in thousands of dollars) was: A. 5700 B $500 C. $660 D. $580 Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device 53. The salary that Mark cars at his present employi A. a variable cost B. a fixed cost Ca product cost D. an opportunity cost 54. The cost of the raw materials that will be used in manufacturing the computer board is A. asunk cost B. a fixed cost Ca period cost D. a variable cost use the manufacturing facility are 55. Property taxes on the building that will be purchased to A a product cost B a variable cost C. an opportunity cost D. a period cost Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes, Shown below are some of the costs incurred by Vignana for last year Costo das die product Wapes paid to the workers who post the figurines 56500 0.000 Cost of Junkmal advertising $47.000 A. SO 56. What is the total of the inventoriable (product) costs above? B. 569,000 C. $155,000 D. S159,000 Gaeddert Corporation reported the following data for the month of July: ewwer: Raw materials.... Work in process Finished goods Begir $36.000 $13,000 $36.000 Ending $27.000 $16.000 $42.000 Additional information $250.000 $76.000 Raw materials purchases Direct labor cost... Mansacturing overhead coat.. Selling expense. Administrative expense $81.000 $24,000 57. The total manufacturing cost for July was: A. $190,000 B. $114,000 C. $199,000 D. $81,000 58. The cost of goods sold for July was: A. $244,000 B. $138,000 C. $190,000 D. $202,000 Management of Jarva Corporation has asked your help as an intern in preparing some key reports for May. The company started the month with raw materials inventories of $29,000. During the month, the company made raw materials purchases amounting to $72,000. At the end of the month, raw materials inventories totaled $33,000. Direct labor cost was $36,000 and manufacturing overhead cost was $57,000. The beginning balance in the work in process account was $24,000 and the ending balance was $16,000. The beginning balance in the finished goods account was $35,000 and the ending balance was $46,000 Sales totaled $220,000. Selling expense was $14,000 and administrative expense was $36,000. 59. The total manufacturing cost for May was! A $93.000 B. $57,000 C. $165,000 D. $161.000 60. The cost of goods sold for May was: A $107.000 B. $180.000 C. $158,000 D. $209,000 The following selected data for March were taken from Rubenstein Company's financial statements: Cost of poods available for sale Men ing overhead Cost o pode matured 5.000 $20.000 $31.000 $10.000 Direct materials used Sales Seagandwirte pe ... S105,000 $30.000 Works o very beginning 61. The gross margin was A $55.000 B. $54,000 C. 550.000 D. $40.000 62. The ending work in process inventory was: A $4,000 B. 58.000 C. $10,000 D. SO Dauenhauer Corporation reported the following data for the month of April Work in process Finished goods $27,000 S10,000 S18000 $20,000 $24,000 $28.000 Atal information Sales Raw materials purchases 5.230.000 $76.000 M wig van A ttive pe 63. The cost of goods manufactured for April was. A $160,000 B. $174,000 C. $167.000 D. $188,000 64. The net operating income for April was A. $60,000 B. $15,000 C. $12,000 D. 591,000 Juart Corporation reported the following data for the month of December $25,000 $22.000 $54.000 Finished poodie 38.000 $21.000 556.000 Additional informatie Sales $230,000 Der where Manufacturing overhead cost $15.000 $ 65. The net operating income for December was: A. $23,000 B. $83,000 C. $88,000 D. $10,000 Steenbergen Corporation reported the following data for the month of June: Raw materials... Work in pro 339,000 $24,000 528,000 $32,000 120.000 10,000 Additional information: Raw materials purchases Direct labor cool..... Manuturing over $50,000 $44.000 STO Administrative expense. $27,000 66. The net operating income for June was: A. $37.000 B. $87,000 C. $79,000 D. $31,000 Management of Thede Corporation has asked your help as an intern in preparing some key reports for July. The beginning balance in the raw materials inventory account was $29,000. During the month, the company made raw materials purchases amounting to $55,000. At the end of the month, the balance in the raw materials inventory account was $37,000. Direct labor cost was $41,000 and manufacturing overhead cost was 561,000. The beginning balance in the work in process account was $22,000 and the ending balance was $23,000. The beginning balance in the finished goods account was $42.000 and the ending balance was $55,000. Sales totaled $230,000. Selling expense was $13,000 and administrative expense was $32.000. 67. The cost of goods manufactured for July was: A $149,000 B. S150,000 C. $148,000 D. $157,000 68. The net operating income for July was: A $28,000 B. $95,000 C. $50,000 D. 583.000 The CFO of Claussen Corporation has provided the following data for June. The beginning balance in the raw materials inventory account was $38,000. During the month, the company made raw materials purchases amounting to $53,000. At the end of the month, the balance in the raw materials inventory account was $27.000. Direct labor cost was $33,000 and manufacturing overhead cost was $74,000. The beginning balance in the work in process account was $24,000 and the ending balance was $23,000. The beginning balance in the finished goods account was $57,000 and the ending balance was $55,000. Sales totaled $290,000. Selling expense was $17,000 and administrative expense was $43,000. 69. The net operating income for June was: A. S56,000 B. $123,000 C. $70,000 D. $116,000 Downin Corporation has provided the following data for May. The beginning balance in the raw materials inventory account was $34,000. During the month, the company made raw materials purchases amounting to $65,000. At the end of the month, the balance in the raw materials inventory account was $29.000 Direct labor cost was $30,000 and manufacturing overhead cost was $56,000. The beginning balance in the work in process account was $15,000 and the ending balance was $16,000. The beginning balance in the finished goods account was $41,000 and the ending balance was $57,000. Sales totaled $220,000. Selling expense was $21,000 and administrative expense was $42,000. 70. The net operating income for May was: A. $71,000 B. $81,000 C. $6,000 D. $18,000