63) The following information was obtained from Sizzler Company:
• Advertising costs: $7,900
• Indirect labor: $9,000
• Direct Labor: $31,000
• Indirect materials: $7,200
• Direct materials: $47,000
• Factory utilities: $3,000
• Factory repair and maintenance: $700
• Factory janitorial costs: $1,900
• Manufacturing equipment depreciation: $1,600
• Delivery vehicle depreciation: $790
• Administrative wages and salaries: $19,000
How much were Sizzler’s product costs?
A) $102,190
B) $99,500
C) $129,090
D) $101,400
64) The following information was obtained from Sizzler Company:
• Advertising costs: $7,900
• Indirect labor: $9,000
• Direct Labor: $31,000
• Indirect materials: $7,200
• Direct materials: $47,000
• Factory utilities: $3,000
• Factory repair and maintenance: $700
• Factory janitorial costs: $1,900
• Manufacturing equipment depreciation: $1,600
• Delivery vehicle depreciation: $790
• Administrative wages and salaries: $19,000
How much was Sizzler’s factory overhead?
A) $24,190
B) $1,600
C) $23,400
D) $3,600
65) Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balance—work in process inventory $12,000
Ending balance—work in process inventory $28,000
Beginning balance—direct materials inventory $42,000
Ending balance—direct materials inventory $30,000
Purchases—direct materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of direct materials used in production?
A) $210,000
B) $150,000
C) $192,000
D) $252,000
66) Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balance—work in process inventory $12,000
Ending balance—work in process inventory $28,000
Beginning balance—direct materials inventory $42,000
Ending balance—direct materials inventory $30,000
Purchases—direct materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of manufacturing overhead costs?
A) $180,000
B) $156,500
C) $147,000
D) $135,000
67) Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balance—work in process inventory $12,000
Ending balance—work in process inventory $28,000
Beginning balance—direct materials inventory $42,000
Ending balance—direct materials inventory $30,000
Purchases—direct materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of manufacturing costs incurred during the year?
A) $427,000
B) $607,000
C) $180,000
D) $595,000
68) Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balance—work in process inventory $12,000
Ending balance—work in process inventory $28,000
Beginning balance—direct materials inventory $42,000
Ending balance—direct materials inventory $30,000
Purchases—direct materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of the cost of goods manufactured for the year?
A) $591,000
B) $579,000
C) $619,000
D) $607,000
69) Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balance—finished goods inventory $49,500
Ending balance—finished goods inventory $42,000
Cost of goods manufactured $591,000
How much is the cost of goods sold?
A) $682,500
B) $598,500
C) $549,000
D) $682,000
70) Arturo Manufacturing Company provided the following information for the year 2012:
Purchases—direct materials $180,000
Direct materials used in production $192,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
Please refer to the T-accounts below which show the beginning balances for the year.
Use the T-accounts to record the transactions for the year. What is the ending balance in the Direct materials
account?
A) $108,000
B) $12,000
C) $222,000
D) $30,000
71) Arturo Manufacturing Company provided the following information for the year 2012:
Purchases—direct materials $180,000
Direct materials used in production $192,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
Cost of goods manufactured $591,000
Please refer to the T-accounts below which show the beginning balances for the year.
Use the T-accounts to record the transactions for the year. What is the ending balance in the work in process
account?
A) $28,000
B) $12,000
C) $22,000
D) $30,000
72) Arturo Manufacturing Company provided the following information for the year 2012:
Purchases—direct materials $180,000
Direct materials used in production $192,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
Cost of goods manufactured $591,000
Cost of goods sold $598,500
Please refer to the T-accounts below which show the beginning balances for the year.
Use the T-accounts to record the transactions for the year. What is the ending balance in the finished goods
inventory?
A) $28,000
B) $42,000
C) $22,000
D) $91,500
73) T-accounts for the inventory accounts of the Arturo Manufacturing Company are shown below. This data
represents transactions for the year of 2012.
Based on the data shown here, what was the amount of direct materials used in production? (NOTE: This is not
covered in Chapter 16.)
A) $180,000
B) $591,000
C) $192,000
D) $30,000
74) T-accounts for the inventory accounts of the Arturo Manufacturing Company are shown below. This data
represents transactions for the year of 2012.
Based on the data shown here, what was the amount of the cost of goods manufactured?
A) $607,000
B) $192,000
C) $28,000
D) $591,000
75) T-accounts for the inventory accounts of the Arturo Manufacturing Company are shown below. This data
represents transactions for the year of 2012.
Based on the data shown here, what was the amount of the cost of goods sold?
A) $598,500
B) $591,000
C) $42,000
D) $7,500
76) The following information has been provided by Buffalo Company:
• Direct labor: $100,000
• Direct materials used: $40,000
• Direct materials purchased: $67,000
• Cost of goods manufactured: $199,000
• Ending work in process: $46,000
• Corporate headquarters’ property taxes: $6,000
• Manufacturing overhead: $79,000
How much was Buffalo’s beginning work in process?
A) $20,000
B) $42,000
C) $26,000
D) $66,000
77) The following information was obtained from Fizz Company:
• Advertising costs: $9,900
• Indirect labor: $11,000
• CEO’s salary: $49,000
• Direct Labor: $41,000
• Indirect materials: $7,900
• Direct materials: $61,000
• Factory utilities: $9,000
• Factory janitorial costs: $2,300
• Manufacturing equipment depreciation: $2,100
• Delivery vehicle depreciation: $1,100
• Administrative wages and salaries: $21,000
How much were Fizz’s period costs?
A) $60,000
B) $81,000
C) $92,000
D) $79,900
78) The following information was obtained from Fizz Company:
• Advertising costs: $9,900
• Indirect labor: $11,000
• CEO’s salary: $49,000
• Direct Labor: $41,000
• Indirect materials: $7,900
• Direct materials: $61,000
• Factory utilities: $700
• Factory janitorial costs: $2,300
• Manufacturing equipment depreciation: $2,100
• Delivery vehicle depreciation: $1,100
• Administrative wages and salaries: $21,000
How much were Fizz’s inventoriable product costs?
A) $126,000
B) $104,100
C) $127,100
D) $115,000
79) Davidson Production provides the following information on the year 2012:
COST OF GOODS MANUFACTURED
Beginning work in process
$5,500
Direct materials used:
$71,000
Direct labor
37,000
Manufacturing overhead
242,000
Total mfg costs incurred
350,000
Total mfg costs to account for
355,500
Ending work in process
(7,500)
Cost of goods manufactured
$348,000
During the year, Davidson produced 71,020 units of product. What was the unit product cost (cost to make each
unit)?
(Please round to the nearest cent.)
A) $4.90
B) $4.93
C) $5.01
D) $6.27
80) Evanston Manufacturing Company reported the following information for the year 2012:
Number of units produced 4,800
Number of units sold 5,250
Cost of goods manufactured $460,800
Cost of goods sold $488,250
Sales Revenue $1,260,000
Gross Profit $771,750
Operating expense $724,900
What was the unit product cost (cost to make one unit of product)?
(Please round to the nearest cent.)
A) $87.77
B) $262.50
C) $93.00
D) $96.00
81) For a manufacturing business, which of the following would be considered an inventoriable product cost?
A) Research and development
B) Factory janitorial services
C) Advertising
D) Delivery costs
82) For a manufacturing business, which of the following would be considered an inventoriable product cost?
A) Salaries of salesmen
B) Salary of the CEO
C) Salaries of the accounting staff
D) Salary of the factory security guard
83) For a manufacturing business, which of the following would be considered an inventoriable product cost?
A) Depreciation of delivery vehicles
B) Depreciation of administrative building furniture and fixtures
C) Depreciation of manufacturing equipment
D) Depreciation of the accounting department computer equipment
84) For a manufacturing business, which of the following would be considered a direct labor cost?
A) Wages of the assembly line staff
B) Wages of the factory janitors
C) Wages of the factory manager
D) Wages of the internal auditors
85) For a manufacturing business, which of the following would be included in manufacturing overhead?
A) Sales commissions
B) Fuel and maintenance for delivery vehicles
C) Wages of the assembly line workers
D) Wages of the factory manager
86) For a manufacturing business, which of the following would be included in manufacturing overhead?
A) Direct materials cost
B) Indirect materials cost
C) Direct labor
D) Advertising
87) For a manufacturing business, which of the following would not be considered an inventoriable product cost?
A) Indirect materials
B) Factory utilities
C) Direct labor
D) Sales commission
88) South State Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2012.
Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to
the factory included utilities of $3,100; maintenance of $4,500; repairs of $1,800; depreciation of $7,900; and
property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory
began the year with a $5,500 balance and ended the year with a $7,500 balance.
Required: Prepare a schedule of cost of goods manufactured for South State Company using the format below.
COST OF GOODS MFGD
Beginning work in process
Direct materials used:
Direct labor
Manufacturing overhead:
Indirect labor
Indirect materials
Utilities
Maintenance
Repairs
Depreciation
Property taxes
Total manufacturing overhead
Total mfg costs incurred
Total mfg costs to account for
Ending work in process
Cost of goods manufactured
Beginning work in process
Direct materials used:
Direct labor
Manufacturing overhead:
Indirect labor
Indirect materials
Utilities
Maintenance
Repairs
Depreciation
Property taxes
Total manufacturing overhead
Total mfg costs incurred
Total mfg costs to account for
Cost of goods manufactured
89) South State Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2012.
Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to
the factory included utilities of $3,100; maintenance of $4,500; repairs of $1,800; depreciation of $7,900; and
property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory
began the year with a $5,500 balance and ended the year with a $7,500 balance.
How much is the cost of goods manufactured?
A) $124,700
B) $130,200
C) $137,700
D) $132,200
56
90) Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balance—work in process inventory $12,000
Ending balance—work in process inventory $28,000
Beginning balance—direct materials inventory $42,000
Ending balance—direct materials inventory $30,000
Purchases—direct materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
Please prepare a statement of the cost of goods manufactured using the following format:
COST OF GOODS MFGD
Beginning work in process
Direct materials used:
Beginning direct materials inventory
Purchases direct materials
Available for use
Ending direct materials inventory
Direct materials used
Direct labor
Manufacturing overhead:
Indirect materials
Indirect labor
Depreciation – plant & equip.
Plant utilities & insurance
Total manufacturing overhead
Total mfg costs incurred
Total mfg costs to account for
Ending work in process
Cost of goods manufactured
91) Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balance—work in process inventory $12,000
Ending balance—work in process inventory $28,000
Beginning balance—direct materials inventory $42,000
Ending balance—direct materials inventory $30,000
Purchases—direct materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
How much is the cost of goods manufactured?
A) $591,000
B) $607,000
C) $619,000
D) $579,000
92) Arturo Manufacturing Company provided the following information for the year 2012:
Purchases—direct materials $180,000
Direct materials used in production $192,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
Cost of goods manufactured $591,000
Cost of goods sold $598,500
Please refer to the T-accounts below which show the beginning balances for the year. Record the transactions for
the year in each of the three inventory accounts and then show the ending balance in each T–account.
93) Best Company sells office supplies. The following information summarizes Best’s operating activities for 2012:
Utilities for store
$6,000
Rent for store
$8,000
Sales commissions
$4,500
Purchases of merchandise
$54,000
Inventory on January 1, 2012
$30,000
Inventory on December 31, 2012
$20,500
Sales revenue
$108,000
Required: Prepare an income statement for Best Company, a merchandiser, for the year ended December 31,
2012.using the format below. Please include a vertical analysis rounded to the nearest tenth of a percent.
Sales revenue
Cost of goods sold
Beginning inventory
Purchases
Cost of goods available for sale
Ending inventory
Cost of goods sold
Gross profit
Selling expenses
Sales commissions
General expenses
Rent expense
Utilities expense
Total operating expenses
Net income/(loss)
Sales revenue
Cost of goods sold
Beginning inventory
Purchases
Cost of goods available for sale
Ending inventory
Cost of goods sold
Gross profit
Selling expenses
Sales commissions
General expenses
Rent expense
Utilities expense
Total operating expenses
Net income/(loss)