1. [The
following information applies to the questions displayed below.]
Finished goods
inventory, January 1, 2011 $
30,400
Finished goods
inventory, December 31, 2011 $
25,200
If the cost of goods manufactured for the year was $396,000,
what was the cost of goods sold for the year?
$401,200.
None of these.
$396,000.
$406,400.
$411,600.
2. Yang
Corporation recently computed total product costs of $579,000 and total period
costs of $480,000, excluding $41,000 of sales commissions that were overlooked
by the company’s administrative assistant. On the basis of this information,
Yang’s income statement should reveal operating expenses of:
$41,000.
$620,000.
$579,000.
$480,000.
$521,000.
3. The
accounting records of Diego Company revealed the following costs, among others:
Factory insurance $ 35,000
Raw material used 258,000
Customer
entertainment 17,000
Indirect labor 48,000
Depreciation on
salespersons’ cars 31,000
Production equipment
rental costs 74,000
Calculate the total manufacturing overhead for the company.
$157,000.
$463,000.
None of these.
$188,000.
$205,000.
4. Carolina
Plating Company reported a cost of goods manufactured of $523,000, with the
firm’s year-end balance sheet revealing work in process and finished goods of
$76,000 and $140,000, respectively. If supplemental information disclosed raw
materials used in production of $87,000, direct labor of $141,000, and
manufacturing overhead of $241,000, the company’s beginning work in process
must have been:
None of these.
$22,000.
$393,000.
$130,000.
$55,000.
5. The
accounting records of Dolphin Company revealed the following information:
Total manufacturing
costs $ 760,000
Work-in-process
inventory, Jan. 1 79,000
Work-in-process
inventory, Dec. 31 101,000
Finished-goods
inventory, Jan. 1 169,000
Finished-goods
inventory, Dec. 31 146,000
Dolphin’s cost of goods sold is:
None of these.
$761,000.
$759,000.
$783,000.
$738,000.
6. [The
following information applies to the questions displayed below.]
Raw materials
inventory, January 1, 2011 $
34,000
Raw materials
inventory, December 31, 2011 $
28,200
10_29_2012
If purchases of raw materials were $150,000 during the year,
what was the amount of raw materials used during the year?
$150,000.
$155,800.
$161,600.
$144,200.
None of these.
7. Hot’lanta,
Inc., which uses the high-low method to analyze cost behavior, has determined
that machine hours best explain the company’s utilities cost. The company’s
relevant range of activity varies from a low of 600 machine hours to a high of
1,100 machine hours, with the following data being available for the first six
months of the year:
Month Utilities Machine Hours
January $9,200 850
February 8,860 770
March 9,450
860
April 9,860 970
May 10,240 1,000
June 9,650 950
Using the high-low method, the utilities cost associated
with 1,030 machine hours would be:
$10,420.
$10,140.
$10,330.
$10,290.
an amount other than those listed above.
1. [The
following information applies to the questions displayed below.] Finished goods
inventory, January 1, 2011 $
30,400 Finished goods
inventory, December 31, 2011 $
25,200 If the cost of goods manufactured for the year was $396,000,
what was the cost of goods sold for the year? $401,200. None of these. $396,000. $406,400. $411,600. 2. Yang
Corporation recently computed total product costs of $579,000 and total period
costs of $480,000, excluding $41,000 of sales commissions that were overlooked
by the company’s administrative assistant. On the basis of this information,
Yang’s income statement should reveal operating expenses of: $41,000. $620,000. $579,000. $480,000. $521,000. 3. The
accounting records of Diego Company revealed the following costs, among others: Factory insurance $ 35,000 Raw material used 258,000 Customer
entertainment 17,000 Indirect labor 48,000
Depreciation on
salespersons’ cars 31,000 Production equipment
rental costs 74,000 Calculate the total manufacturing overhead for the company. $157,000. $463,000. None of these. $188,000. $205,000. 4. Carolina
Plating Company reported a cost of goods manufactured of $523,000, with the
firm’s year-end balance sheet revealing work in process and finished goods of
$76,000 and $140,000, respectively. If supplemental information disclosed raw
materials used in production of $87,000, direct labor of $141,000, and
manufacturing overhead of $241,000, the company’s beginning work in process
must have been: None of these. $22,000. $393,000. $130,000. $55,000. 5. The
accounting records of Dolphin Company revealed the following information: Total manufacturing
costs $ 760,000 Work-in-process
inventory, Jan. 1 79,000 Work-in-process
inventory, Dec. 31 101,000 Finished-goods
inventory, Jan. 1 169,000 Finished-goods
inventory, Dec. 31 146,000 Dolphin’s cost of goods sold is: None of these. $761,000. $759,000. $783,000. $738,000. 6. [The
following information applies to the questions displayed below.] Raw materials
inventory, January 1, 2011 $
34,000 Raw materials
inventory, December 31, 2011 $
28,200 10_29_2012If purchases of raw materials were $150,000 during the year,
what was the amount of raw materials used during the year? $150,000. $155,800. $161,600. $144,200. None of these. 7. Hot’lanta,
Inc., which uses the high-low method to analyze cost behavior, has determined
that machine hours best explain the company’s utilities cost. The company’s
relevant range of activity varies from a low of 600 machine hours to a high of
1,100 machine hours, with the following data being available for the first six
months of the year: Month Utilities Machine Hours January $9,200 850 February 8,860 770 March 9,450
860 April 9,860 970 May 10,240 1,000 June 9,650 950 Using the high-low method, the utilities cost associated
with 1,030 machine hours would be: $10,420. $10,140. $10,330. $10,290. an amount other than those listed above.
