126. Figure 2-11
Information from the records of the Abel Corporation for July 2014 was as follows:
Sales
$1,230,000
Selling and administrative expenses
210,000
Direct materials used
264,000
Direct labor
300,000
Factory overhead *
405,000
*variable overhead is $205,000, fixed overhead is $200,000
Inventories
July 1, 2014
July 31, 2014
Direct materials
$36,000
$42,000
Work in process
75,000
84,000
Finished goods
69,000
57,000
Refer to Figure 2-11. The variable product costs are
127. Figure 2-11
Information from the records of the Abel Corporation for July 2014 was as follows:
Sales
$1,230,000
Selling and administrative expenses
210,000
Direct materials used
264,000
Direct labor
300,000
Factory overhead *
405,000
*variable overhead is $205,000, fixed overhead is $200,000
Inventories
July 1, 2014
July 31, 2014
Direct materials
$36,000
$42,000
Work in process
75,000
84,000
Finished goods
69,000
57,000
Refer to Figure 2-11. The total product cost is
128. Figure 2-12
Information from the records of the Conundrum Company for September 2014 was as follows:
Sales
$307,500
Selling and administrative expenses
52,500
Direct materials used
66,000
Direct labor
75,000
Variable factory overhead
50,000
Factory overhead
51,250
Inventories
Sept. 1, 2014
Sept 30, 2014
$ 8,000
$10,500
18,750
21,000
17,250
14,250
Conundrum Corporation produced 20,000 units.
Refer to Figure 2-12. The prime costs per unit for September were
129. Figure 2-12
Information from the records of the Conundrum Company for September 2014 was as follows:
Sales
$307,500
Selling and administrative expenses
52,500
Direct materials used
66,000
Direct labor
75,000
Variable factory overhead
50,000
Factory overhead
51,250
Inventories
Sept. 1, 2014
Sept 30, 2014
$ 8,000
$10,500
18,750
21,000
17,250
14,250
Conundrum Corporation produced 20,000 units.
Refer to Figure 2-12. What are the conversion costs per unit?
130. Figure 2-12
Information from the records of the Conundrum Company for September 2014 was as follows:
Sales
$307,500
Selling and administrative expenses
52,500
Direct materials used
66,000
Direct labor
75,000
Variable factory overhead
50,000
Factory overhead
51,250
Inventories
Sept. 1, 2014
Sept 30, 2014
$ 8,000
$10,500
18,750
21,000
17,250
14,250
Conundrum Corporation produced 20,000 units.
Refer to Figure 2-12. If production increased to 32,000 units next year, what is the effect on variable product costs per unit and total product costs
per unit respectively?
131. Figure 2-12
Information from the records of the Conundrum Company for September 2014 was as follows:
Sales
$307,500
Selling and administrative expenses
52,500
Direct materials used
66,000
Direct labor
75,000
Variable factory overhead
50,000
Factory overhead
51,250
Inventories
Sept. 1, 2014
Sept 30, 2014
$ 8,000
$10,500
18,750
21,000
17,250
14,250
Conundrum Corporation produced 20,000 units.
Refer to Figure 2-12. What are the total variable costs per unit?
132. Figure 2-12
Information from the records of the Conundrum Company for September 2014 was as follows:
Sales
$307,500
Selling and administrative expenses
52,500
Direct materials used
66,000
Direct labor
75,000
Variable factory overhead
50,000
Factory overhead
51,250
Inventories
Sept. 1, 2014
Sept 30, 2014
$ 8,000
$10,500
18,750
21,000
17,250
14,250
Conundrum Corporation produced 20,000 units.
Refer to Figure 2-12. What is the total product cost per unit?
133. Product costs are converted from cost to expense when
134. A company has purchased some steel to use in the production of steel railings. If this steel has NOT been
put into production, it would be classified as
135. The income statement prepared for external reporting is
136. Which of the following costs would NOT be included in calculating inventory values under the absorption-
costing basis?
137. When calculating the absorption-costing income for external reporting, all
138. Which of the following accounts would appear on the financial statements of ONLY a manufacturing
firm?
139. Which type of inventory is normally sold to other organizations?
140. The records of Custom Choppers, Inc. for September 2014 shows the following information:
Sales
$820,000
Selling and administrative expenses
140,000
Direct materials purchases
176,000
Direct labor
200,000
Factory overhead
270,000
Direct materials, September 1
24,000
Work in process, September 1
50,000
Finished goods, September 1
46,000
Direct materials, September 30
28,000
Work in process, September 30
56,000
Finished goods, September 30
38,000
The net income for the month of September is
141. The merchandise inventory in a merchandising business corresponds most closely to which of the
following items in a manufacturing firm?
142. If beginning work-in-process inventory is $160,000, ending work-in-process inventory is $180,000, cost of
goods manufactured is $500,000, and direct materials used are $130,000, what are the conversion costs?
143. The following information pertains to Steel Wheels, Inc:
Cost of goods manufactured
$350,000
Beginning work-in-process inventory
110,000
Ending work-in-process inventory
80,000
Manufacturing overhead
50,000
What are the prime costs for the year?
144. Inventory balances for the Beemer Enterprises in April 2014 are as follows:
April 1, 2014
April 30, 2014
Raw materials
$ 27,000
$21,000
Work in process
48,000
37,200
Finished goods
108,000
90,000
During April, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
Prime costs for April were
145. Inventory balances for Marshall, Inc., in June 2014 are as follows:
June 1, 2014
June 30, 2014
Raw materials
$1,125
$ 875
Work in process
2,000
1,550
Finished goods
4,500
3,750
During June, purchases of direct materials were $1,500. Direct labor and factory overhead costs were $2,500 and $3,500, respectively.
Conversion costs for June were
146. Figure 2-13
Inventory balances for the Jameson Company in October 2014 are as follows:
October 1, 2014
October 31, 2014
Raw materials
$ 27,000
$21,000
Work in process
48,000
37,200
Finished goods
108,000
90,000
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
Refer to Figure 2-13. What is the cost of materials used in production?
147. Figure 2-13
Inventory balances for the Jameson Company in October 2014 are as follows:
October 1, 2014
October 31, 2014
Raw materials
$ 27,000
$21,000
Work in process
48,000
37,200
Finished goods
108,000
90,000
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
Refer to Figure 2-13. What are the total manufacturing costs added to production in the period?
148. Figure 2-13
Inventory balances for the Jameson Company in October 2014 are as follows:
October 1, 2014
October 31, 2014
Raw materials
$ 27,000
$21,000
Work in process
48,000
37,200
Finished goods
108,000
90,000
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
Refer to Figure 2-13. What is the cost of goods manufactured?
149. The sum of the total additions to work in process during a period is
150. The following information for the Sutton Glass Company has been provided:
Cost of goods manufactured
$100,000
Work in process:
Beginning
15,000
Ending
20,000
Direct labor
30,000
Direct materials used
?
Factory overhead
45,000
What is the amount of direct materials used?
151. The ending work-in-process inventory is deducted on the
152. Cost of goods sold equals cost of goods manufactured
153. Inventory balances for Spiritlight Ventures for November 2014 are as follows:
November 1, 2014
November 30, 2014
Materials
$ 9,000
$ 7,000
Work in process
16,000
12,400
Finished goods
36,000
30,000
During November, purchases of direct materials were $18,000. Direct labor and factory overhead costs were $20,000 and $28,000, respectively.
The cost of goods manufactured in November was
154. Selected data concerning the past year’s operations of the Motor City Corporation are as follows:
Selling and administrative expenses
$225,000
Direct materials used
467,500
Direct labor (50,000 hours)
450,000
Factory overhead application rate
8 per DLH
Inventories
Beginning
Ending
Direct material
$ 75,000
$ 67,500
Work in process
112,500
135,000
Finished goods
60,000
37,500
The cost of direct materials purchased is
155. Figure 2-14
The following is the data for Lauren Enterprises:
Selling and administrative expenses
$75,000
Direct materials used
265,000
Direct labor (25,000 hours)
300,000
Factory overhead application rate
$16 per DLH
Inventories
Beginning
Ending
Direct materials
$50,000
$45,000
Work in process
75,000
90,000
Finished goods
40,000
25,000
Refer to Figure 2-14. What is the cost of goods manufactured?
156. Figure 2-14
The following is the data for Lauren Enterprises:
Selling and administrative expenses
$75,000
Direct materials used
265,000
Direct labor (25,000 hours)
300,000
Factory overhead application rate
$16 per DLH
Inventories
Beginning
Ending
Direct materials
$50,000
$45,000
Work in process
75,000
90,000
Finished goods
40,000
25,000
Refer to Figure 2-14. What is the cost of goods sold?
157. The cost of units completed during a period is called
158. The records for the previous year for Sarasota Boat Builders, Inc., shows the following data::
Selling and administrative expenses
$300,000
Direct materials used
530,000
Direct labor (100,000 hours)
600,000
Factory overhead application rate
$5 per DLH
Inventories
Beginning
Ending
Work in process
$150,000
$160,000
Finished goods
80,000
50,000
The cost of goods sold is
159. The following information has been provided for Hopen Enterprises:
Cost of goods manufactured
$7,500
Work in process
Beginning
1,200
Ending
1,400
Direct labor
4,000
Materials placed in production
1,500
Factory overhead
?
What is the amount of factory overhead?
160. The following information is from the records of Stretch Limousines, Inc.:
Net direct materials purchase cost
$225,000
Total direct materials used
275,000
Beginning direct materials inventory
125,000
The ending direct materials inventory is
161. The Sumter Company recently had a fire in its accounting office, destroying most of its records. Only the
following information could be salvaged for 2014:
Direct labor
$400,000
Factory overhead
200,000
Cost of goods sold
800,000
Work in process, January 1
80,000
Finished goods, January 1
160,000
Work in process, December 31
100,000
Finished goods, December 31
120,000
The cost of direct materials used in production during 2014 is
162. Figure 2-15
Information from the records of Chrome Ponies Enterprises for June 2014 is as follows:
Sales
$41,000
Direct labor
10,000
Selling and administrative expenses
7,000
Direct materials purchases
6,000
Factory overhead
13,500
Inventories
June 1, 2014
June 30, 2014
Direct materials
$1,200
$1,400
Work in process
2,500
2,800
Finished goods
2,300
1,900
Refer to Figure 2-15. What was the cost of materials used in production?
163. Figure 2-15
Information from the records of Chrome Ponies Enterprises for June 2014 is as follows:
Sales
$41,000
Direct labor
10,000
Selling and administrative expenses
7,000
Direct materials purchases
6,000
Factory overhead
13,500
Inventories
June 1, 2014
June 30, 2014
Direct materials
$1,200
$1,400
Work in process
2,500
2,800
Finished goods
2,300
1,900
Refer to Figure 2-15. Chrome Ponies Enterprises’ cost of goods manufactured in June is
164. Figure 2-15
Information from the records of Chrome Ponies Enterprises for June 2014 is as follows:
Sales
$41,000
Direct labor
10,000
Selling and administrative expenses
7,000
Direct materials purchases
6,000
Factory overhead
13,500
Inventories
June 1, 2014
June 30, 2014
Direct materials
$1,200
$1,400
Work in process
2,500
2,800
Finished goods
2,300
1,900
Refer to Figure 2-15. What are the total manufacturing costs added?
165. Figure 2-15
Information from the records of Chrome Ponies Enterprises for June 2014 is as follows:
Sales
$41,000
Direct labor
10,000
Selling and administrative expenses
7,000
Direct materials purchases
6,000
Factory overhead
13,500
Inventories
June 1, 2014
June 30, 2014
Direct materials
$1,200
$1,400
Work in process
2,500
2,800
Finished goods
2,300
1,900
Refer to Figure 2-15. What is the gross margin (profit)?
166. Figure 2-15
Information from the records of Chrome Ponies Enterprises for June 2014 is as follows:
Sales
$41,000
Direct labor
10,000
Selling and administrative expenses
7,000
Direct materials purchases
6,000
Factory overhead
13,500
Inventories
June 1, 2014
June 30, 2014
Direct materials
$1,200
$1,400
Work in process
2,500
2,800
Finished goods
2,300
1,900
Refer to Figure 2-15. What is the cost of goods sold?
167. Morton Manufacturing shows cost of goods sold for the month of March was $90,000. The finished goods
inventory was $15,000 on March 1 and $17,500 on March 31. Beginning and ending work-in-process
inventories were $20,000 and $25,000, respectively. What was the cost of goods manufactured during March?
168. Assume the following information for the Blue Knights Corporation for the year ended December 31,
2014:
Sales
$2,250
Cost of goods manufactured for the year
1,350
Beginning finished goods inventory
450
Ending finished goods inventory
495
Selling and administrative expenses
300
What is the cost of goods sold for the year ended December 31, 2014?
169. Rebel Yell, Inc., recorded the following data for April:
Beginning finished goods inventory
$ 60,000
Beginning work-in-process inventory
40,000
Ending work-in-process inventory
80,000
Ending finished goods inventory
50,000
Factory overhead costs
200,000
Direct materials used
160,000
Direct labor
100,000
What is the cost of goods manufactured for April?
170. The records of the Williamson Company show the following information:
Direct materials used
$ 90,000
Direct labor
130,000
Factory overhead
150,000
Beginning work-in-process inventory
15,000
Beginning finished goods inventory
20,000
Ending work-in-process inventory
42,000
Selling and administrative expenses
37,500
What was the cost of goods manufactured during the year?
171. Which of the following is NOT an example of a difference between the income statement of a service
organization and the income statement of a manufacturing organization?
172. Which of the following items would NOT appear on an income statement of a service organization?