123
169)
Using the information below, calculate gross profit for the period:
Beginning Raw Materials Inventory $ 25,000
Ending Raw Materials Inventory 30,000
Beginning Work in Process Inventory 55,000
Ending Work in Process Inventory 64,000
Beginning Finished Goods Inventory 80,000
Ending Finished Goods Inventory 67,000
Cost of Goods Sold for the period 540,000
Sales revenues for the period 1,254,00
0
Operating expenses for the period 232,000
A) $1,022,000.
B) $727,000.
C) $714,000.
D) $482,000.
E) $187,000.
170)
Using the information below, calculate cost of goods sold for the period:
Sales revenues for the period $ 1,304,00
0
Operating expenses for the period 239,000
Finished Goods Inventory, January 1 36,000
Finished Goods Inventory, December 31 41,000
Cost of goods manufactured for the period 540,000
A) $448,000. B) $774,000. C) $535,000. D) $769,000. E) $530,000.
126
171)
Using the information below, calculate gross profit for the period:
Sales revenues for the period $ 1,304,00
0
Operating expenses for the period 239,000
Finished Goods Inventory, January 1 36,000
Finished Goods Inventory, December 31 41,000
Cost of goods manufactured for the period 540,000
A) $769,000. B) $535,000. C) $448,000. D) $530,000. E) $774,000.
172)
Using the information below, calculate net income for the period:
Sales revenues for the period $ 1,304,00
0
Operating expenses for the period 239,000
Finished Goods Inventory, January 1 36,000
Finished Goods Inventory, December 31 41,000
Cost of goods manufactured for the period 540,000
A) $774,000. B) $535,000. C) $769,000. D) $448,000. E) $530,000.
173)
An internal control system consists of the policies and procedures managers use to do all of the
following except:
A)
Ensure reliable accounting.
B)
Promote efficient operations.
C)
Determine pricing for products.
D)
Urge adherence to company policies.
E)
Protect assets.
174)
The schedule of cost of goods manufactured is divided into four parts consisting of all of the
following except:
A)
Direct labor.
B)
Overhead.
C)
Computation of cost of goods manufactured.
D)
Direct materials.
E)
Computation of cost of goods sold.
175)
All of the following statements regarding manufacturing costs are true except:
A)
Direct material costs that increase in total with volume of production are called variable costs.
B)
When overhead costs don’t vary with production, they are called fixed overhead.
C)
Overhead can be both variable and fixed.
D)
The reporting of fixed and variable costs separately is not helpful to managers in analyzing
cost behavior.
E)
When overhead costs vary with production, they are called variable overhead.
176)
Using the information below, compute the raw materials inventory turnover:
Raw Materials Used 130 $ 85,50
131
Raw Materials Used $ 85,50
0
Beginning Raw Materials Inventory 8,000
Ending Raw Materials Inventory 9,000
A) 10.06. B) 9.50. C) 382.02. D) 11.02. E) 9.94.
177)
Using the information below, compute the Days’ sales in raw materials inventory:
Raw Materials Used $ 85,50
0
132
Beginning Raw Materials Inventory 8,000
Ending Raw Materials Inventory 9,000
A) 9.94. B) 36.3. C) 38.4. D) 10.06. E) 11.02.
178)
Using the information below, compute the raw materials inventory turnover:
Raw Materials Used $ 121,60
0
Beginning Raw Materials Inventory 18,000
Ending Raw Materials Inventory 20,200
133
A) 60.6. B) 54.0. C) 6.76. D) 6.37. E) 6.02.
179)
Using the information below, compute the Days’ sales in raw materials inventory:
Raw Materials Used $ 121,60
0
Beginning Raw Materials Inventory 18,000
Ending Raw Materials Inventory 20,200
A) 54.0. B) 6.02. C) 6.37. D) 6.76. E) 60.6.
180)
Just-in-time manufacturing techniques can be useful in _____________ days’ sales in raw materials
inventory.
A)
changing upward
B)
lowering
C)
increasing
D)
keeping constant
E)
adding to
181)
Which of the following statements is true regarding product and period costs?
A)
Delivery expense is a product cost and indirect materials is a period cost.
B)
Factory rent is a product cost and advertising expense is a period cost.
C)
Office rent is a product cost and supervisors’ salaries expense is a period cost.
D)
Office salaries expense and factory maintenance are both product costs.
E)
Sales commissions and indirect labor are both period costs.
182)
A company’s prime costs total $4,500,000 and its conversion costs total $5,500,000. If direct
materials are $2,000,000, calculate the overhead costs:
A) $3,000,000.
B) $1,000,000.
C) $2,000,000.
D) $2,500,000.
E) $3,500,000.
183)
If the cost of the beginning work in process inventory is $60,000, costs of goods manufactured is
$890,000, direct materials cost is $330,000, direct labor cost is $210,000, and overhead cost is
$315,000, calculate the ending work in process inventory:
A) $350,000. B) $355,000. C) $35,000. D) $45,000. E) $25,000.
184)
If the cost of the beginning work in process inventory is $60,000, direct materials cost is $350,000,
direct labor cost is $216,000, and overhead cost is $319,000, and the ending work in process
inventory is $55,000, calculate the cost of goods manufactured:
A) $571,000.
B) $1,000,000.
C) $885,000.
D) $890,000.
E) $945,000.