Question 1

Hendrix & Franks Co. had the following beginning and ending inventory balances for the current year ended December 31:

	January 1	December 31
Materials	$11,000	$ 8,800
Work in Process	19,800	18,700
Finished Goods	23,100	18,150

In addition, direct labor costs of $33,000 were incurred, manufacturing overhead equaled $46,200, materials purchased were $29,700, and selling and administrative costs were $24,200. Hendrix & Franks Co. sold 27,500 units of product during the year at a sales price of $5.25 per unit. What was the operating income (loss) for the year?

Options:

$18,500

$125,000

$3,025

$2,000

Question 2

Rocha & Noel Inc. had cost of goods sold of $123,200 for the current year ended December 31. The finished goods inventory on January 1 was $30,800, and the finished goods inventory on December 31 was $18,700. What was the amount of cost of goods manufactured for the year?

Options:

$129,000

$111,100

$67,000

$113,000