Question 1

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? 
A)Option A
B)Option B
C)Option C
D)Option D

Accepted Answer

The cost of the soap used to wash the denim cloth is an indirect material cost, as it is not directly incorporated into the finished product (the jeans). Therefore, option C, indirect materials, is the best choice. Option A, direct labor, and Option B, direct materials, are not appropriate because they do not accurately capture the nature of the cost. Option D, manufacturing overhead, is a broader category that includes indirect materials as well as other indirect costs such as factory rent and utilities. While option D could be used to describe the cost of the soap, it is not the most specific or accurate description.

Question 2

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?
A)$90,000
B)$99,000
C)$125,000
D)$81,000

Accepted Answer

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Question 3

The following data have been provided by a company for a recent accounting period:  The cost of goods manufactured for the period was:
A)$147,000
B)$151,000
C)$153,000
D)$154,000

Accepted Answer

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Question 4

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?
A)$517,000
B)$545,000
C)$569,000
D)$567,000

Accepted Answer

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Question 5

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:
A)$36,000
B)$22,667
C)$51,000
D)$81,000

Accepted Answer

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Question 6

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?
A)$530,000
B)$965,000
C)$745,000
D)$635,000

Accepted Answer

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Question 7

How much opportunity cost is represented in the following information concerning a machine? 
A)$80,000
B)$14,000
C)$25,000
D)$68,000

Accepted Answer

$25,000: Only the resale value of the current machine is an opportunity cost in the above list.

Question 8

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:
A)$15,000
B)$60,000
C)$33,333
D)$20,000

Accepted Answer

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Question 9

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:
A)$20,000
B)$50,000
C)$110,000
D)$150,000

Accepted Answer

Cost of goods sold = Sales - Gross margin
Cost of goods sold = $360,000 - $220,000
Cost of goods sold = $140,000
 11eaaee8_67a8_c25f_933a_f9313fa63c55_TB5186_00 Beginning finished goods inventory = $50,000

Question 10

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?
A)$79,000
B)$109,000
C)$67,000
D)$73,000

Accepted Answer

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Question 11

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?
A)$660,000
B)$670,000
C)$682,000
D)$689,000

Accepted Answer

11eaaee8_67a9_faec_933a_3709b498a867_TB5186_00 Goods available for sale = Cost of goods sold + Finished goods inventory,ending
Goods available for sale = $653,000 + $36,000 = $689,000
Finished goods inventory,beginning + Cost of goods manufactured = Goods available for sale
$29,000 + Cost of goods manufactured = $689,000
Cost of goods manufactured = $689,000 - $29,000 = $660,000

Question 12

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?
A)$105,000
B)$132,000
C)$138,000
D)$112,000

Accepted Answer

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Question 13

Last month a manufacturing company had the following operating results:  What was the cost of goods manufactured for the month?
A)$350,000
B)$385,000
C)$377,000
D)$323,000

Accepted Answer

Sales - Cost of goods sold = Gross margin
$412,000 - Cost of goods sold = $62,000
Cost of goods sold = $350,000
 11eaaee8_67a8_e971_933a_936c1c9b23c7_TB5186_00 Cost of goods manufactured = $323,000

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?
A)$68,000
B)$96,000
C)$64,000
D)$66,000

Accepted Answer

11eaaee8_67a9_5ea5_933a_f9ce4c986d33_TB5186_00 Goods available for sale = Cost of goods sold + Finished goods inventory,ending
Goods available for sale = $66,000 + $16,000
Goods available for sale = $82,000
Merchandise purchased = $82,000 - Merchandise inventory,beginning
Merchandise purchased = $82,000 - $14,000
Merchandise purchased = $68,000

Question 15

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? 
A)Option A
B)Option B
C)Option C
D)Option D

Accepted Answer

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

Question 16

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:
A)$75,000
B)$23,000
C)$65,000
D)$52,000

Accepted Answer

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Question 17

Walton Manufacturing Company gathered the following data for the month.  How much net operating income will be reported for the period?
A)$54,000
B)$17,000
C)$52,000
D)Cannot be determineD.

Accepted Answer

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

Question 18

The following costs were incurred in August:  Prime costs during the month totaled:
A)$39,000
B)$59,000
C)$96,000
D)$38,000

Accepted Answer

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Question 19

Using the following data for August,calculate the cost of goods manufactured:  The cost of goods manufactured was:
A)$106,000
B)$92,000
C)$95,000
D)$89,000

Accepted Answer

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Question 20

Consider the following costs incurred in a recent period:  What was the total amount of the period costs listed above for the period?
A)$78,000
B)$71,000
C)$46,000
D)$37,000

Accepted Answer

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Quiz 2: Managerial Accounting and Cost Concepts

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?

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

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:

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?

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

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:

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:

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?

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?

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

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

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

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

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