Question 1

Direct materials used in production totaled $330,000. Direct labor was $415,000 and manufacturing overhead was $220,000. What were the total manufacturing costs incurred for the month?

Accepted Answer

Total manufacturing costs are calculated by adding direct materials, direct labor, and manufacturing overhead: $330,000 + $415,000 + $220,000 = $965,000.

Question 2

Consider the following costs incurred in a recent period: 
What was the total amount of the period costs listed above for the period?

Accepted Answer

The answer of Consider the following costs incurred in a...

Question 3

The following inventory balances relate to Bharath Manufacturing Corporation at the beginning and end of the year: 
Bharath's cost of goods sold was $653,000. What was Bharath's cost of goods manufactured?

Accepted Answer

The answer of The following inventory balances relate to Bharath...

Question 4

Using the following data for August, calculate the cost of goods manufactured: 
The cost of goods manufactured was:

Accepted Answer

The answer of Using the following data for August, calculate...

Question 5

During August, the cost of goods manufactured was $73,000. The beginning finished goods inventory was $15,000 and the ending finished goods inventory was $21,000. What was the cost of goods sold for the month?

Accepted Answer

The cost of goods sold is calculated as: Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = $15,000 + $73,000 - $21,000 = $67,000.

Question 6

Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim cloth are purchased and are first washed in a giant washing machine. After the cloth is dried, it is cut up into jean pattern shapes and then sewn together. The completed jeans are sold to various retail chains.
-Which of the following terms could be used to correctly describe the wages paid to the workers that cut up the cloth into the jean pattern shapes?

Accepted Answer

The answer of Corcetti Company manufactures and sells prewashed denim...

Question 7

Williams Company's direct labor cost is 25% of its conversion cost. If the manufacturing overhead for the last period was $45,000 and the direct materials cost was $25,000, the direct labor cost was:

Accepted Answer

Conversion cost is the sum of direct labor and manufacturing overhead. If direct labor is 25% of conversion cost, then manufacturing overhead is 75%. Given manufacturing overhead is $45,000, conversion cost is $60,000. Therefore, direct labor cost is 25% of $60,000, which is $15,000.

Question 8

Walton Manufacturing Company gathered the following data for the month. 
How much net operating income will be reported for the period?

Accepted Answer

The answer of Walton Manufacturing Company gathered the following data...

Question 9

Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim cloth are purchased and are first washed in a giant washing machine. After the cloth is dried, it is cut up into jean pattern shapes and then sewn together. The completed jeans are sold to various retail chains.
-Which of the following terms could be used to correctly describe the cost of the soap used to wash the denim cloth?

Accepted Answer

Choice C (direct materials) would be the best choice, as the soap used in the washing machine is a direct material that can be easily traced back to the finished product (the prewashed denim jeans). Choices A (indirect materials) and B (indirect labor) do not directly relate to the cost of the soap used for washing the denim cloth. Choice D (factory overhead) could be a possible option if the cost of the soap was part of a larger overhead cost, but it is not clear from the information given.

Question 10

In August direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $34,000, the direct labor cost was:

Accepted Answer

The answer of In August direct labor was 60% of...

Question 11

The following inventory balances relate to Lequin Manufacturing Corporation at the beginning and end of the year: 
Lequin's total manufacturing cost was $543,000. What was Lequin's cost of goods sold?

Accepted Answer

The answer of The following inventory balances relate to Lequin...

Question 12

Gabrisch Inc. is a merchandising company. Last month the company's merchandise purchases totaled $90,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?

Accepted Answer

Cost of goods sold (COGS) can be calculated using the formula: COGS = Beginning Inventory + Purchases - Ending Inventory. 
So, COGS = $13,000 + $90,000 - $22,000 = $81,000. Therefore, option D is the correct answer.

Question 13

Green Company's costs for the month of August were as follows: direct materials, $27,000; direct labor, $34,000; selling, $14,000; administrative, $12,000; and manufacturing overhead, $44,000. The beginning work in process inventory was $16,000 and the ending work in process inventory was $9,000. What was the cost of goods manufactured for the month?

Accepted Answer

The answer of Green Company's costs for the month of...

Question 14

Haan Inc. is a merchandising company. Last month the company's cost of goods sold was $66,000. The company's beginning merchandise inventory was $14,000 and its ending merchandise inventory was $16,000. What was the total amount of the company's merchandise purchases for the month?

Accepted Answer

The formula to calculate merchandise purchases is: Purchases = Cost of Goods Sold + Ending Inventory - Beginning Inventory. Plugging in the values: $66,000 + $16,000 - $14,000 = $68,000.

Question 15

During the month of August, direct labor cost totaled $13,000 and direct labor cost was 20% of prime cost. If total manufacturing costs during August were $88,000, the manufacturing overhead was:

Accepted Answer

We know that direct labor cost was 20% of prime cost, and we are given the direct labor cost for August as $13,000. Therefore, we can calculate the prime cost as follows:

Prime cost = Direct labor cost / 0.2
Prime cost = $13,000 / 0.2
Prime cost = $65,000

We are also given that total manufacturing costs during August were $88,000. We can use this information to calculate the manufacturing overhead as follows:

Manufacturing overhead = Total manufacturing costs - Direct materials cost - Direct labor cost
Manufacturing overhead = $88,000 - Prime cost - Direct labor cost
Manufacturing overhead = $88,000 - $65,000 - $13,000
Manufacturing overhead = $10,000

Therefore, the manufacturing overhead was $23,000. Choice B is the correct answer.

Question 16

How much opportunity cost is represented in the following information concerning a machine?

Accepted Answer

The answer of How much opportunity cost is represented in...

Question 17

The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000. If the ending inventory of finished goods was $30,000, the beginning inventory of finished goods must have been:

Accepted Answer

The answer of The Lyons Company's cost of goods manufactured...

Question 18

The following costs were incurred in August: 
Prime costs during the month totaled:

Accepted Answer

The answer of The following costs were incurred in August:...

Question 19

The following data have been provided by a company for a recent accounting period: 
The cost of goods manufactured for the period was:

Accepted Answer

The answer of The following data have been provided by...

Question 20

Last month a manufacturing company had the following operating results: 
What was the cost of goods manufactured for the month?

Accepted Answer

The answer of Last month a manufacturing company had the...

Quiz 2: Managerial Accounting and Cost Concepts

Direct materials used in production totaled $330,000. Direct labor was $415,000 and manufacturing overhead was $220,000. What were the total manufacturing costs incurred for the month?

Consider the following costs incurred in a recent period: What was the total amount of the period costs listed above for the period?

The following inventory balances relate to Bharath Manufacturing Corporation at the beginning and end of the year: Bharath's cost of goods sold was $653,000. What was Bharath's cost of goods manufactured?

Using the following data for August, calculate the cost of goods manufactured: The cost of goods manufactured was:

During August, the cost of goods manufactured was $73,000. The beginning finished goods inventory was $15,000 and the ending finished goods inventory was $21,000. What was the cost of goods sold for the month?

Williams Company's direct labor cost is 25% of its conversion cost. If the manufacturing overhead for the last period was $45,000 and the direct materials cost was $25,000, the direct labor cost was:

Walton Manufacturing Company gathered the following data for the month. How much net operating income will be reported for the period?

In August direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $34,000, the direct labor cost was:

The following inventory balances relate to Lequin Manufacturing Corporation at the beginning and end of the year: Lequin's total manufacturing cost was $543,000. What was Lequin's cost of goods sold?

Gabrisch Inc. is a merchandising company. Last month the company's merchandise purchases totaled $90,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?

Haan Inc. is a merchandising company. Last month the company's cost of goods sold was $66,000. The company's beginning merchandise inventory was $14,000 and its ending merchandise inventory was $16,000. What was the total amount of the company's merchandise purchases for the month?

During the month of August, direct labor cost totaled $13,000 and direct labor cost was 20% of prime cost. If total manufacturing costs during August were $88,000, the manufacturing overhead was:

How much opportunity cost is represented in the following information concerning a machine?

The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000. If the ending inventory of finished goods was $30,000, the beginning inventory of finished goods must have been:

The following costs were incurred in August: Prime costs during the month totaled:

The following data have been provided by a company for a recent accounting period: The cost of goods manufactured for the period was:

Last month a manufacturing company had the following operating results: What was the cost of goods manufactured for the month?