Question 1

Juliet Corporation has accumulated the following accounting data for the year:
$\begin{array}{llr}
  \text { Finished goods inventory, January 1} &\$3,200\
 \text { Finished goods inventory, December 31 } &4,000\
 \text {Total cost of goods sold  } &4,200
\end{array}$

The cost of goods manufactured for the year is:

Accepted Answer

The cost of goods manufactured is calculated as: Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = Cost of Goods Sold. Solving for Cost of Goods Manufactured: $3,200 + Cost of Goods Manufactured - $4,000 = $4,200, which gives Cost of Goods Manufactured = $5,000.

Question 2

Ajax Company accumulated the following account information for the year:
$\begin{array}{ll}
\text { Beginning raw materials inventory } & \$ 6,000 \
\text { Indirect materials cost } & 2,000 \
\text { Indirect labor cost } & 5,000 \
\text { Maintenance of factory equipment } & 2,800 \
\text { Direct labor cost } & 7,000
\end{array}$ 
Using the above information,total factory overhead costs would be:

Accepted Answer

Factory overhead costs include indirect materials, indirect labor, and maintenance of factory equipment. Therefore, the total factory overhead costs are $2,000 (indirect materials) + $5,000 (indirect labor) + $2,800 (maintenance) = $9,800.

Question 3

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Accepted Answer

A manufacturing statement, also known as a cost of goods manufactured statement, summarizes the total manufacturing costs incurred during a specific period. This statement includes the direct materials, direct labor, and manufacturing overhead costs associated with producing the goods during the period.

Question 4

Reference: 14_01
Use the following information from Hardy Co. for the current year:
 $\begin{array}{lr}
\text { Direct materials used } & \$ 5,000 \
\text { Direct Labor } & 7,000 \
\text { Total Factory overhead } & 5,100 \
\text { Beginning goods in process } & 3,000 \
\text { Ending goods in process } & 4,000
\end{array}$ 
-Hardy Co.'s cost of goods manufactured for the current year is:

Accepted Answer

The answer of Reference: 14_01
Use the following information from Hardy...

Question 5

The total cost of goods completed during the accounting period for a manufacturer is called:

Accepted Answer

The cost of goods manufactured refers to the total cost of goods completed during the accounting period, including direct materials, direct labor, and manufacturing overhead. This cost is calculated by adding the beginning goods in process inventory to the total manufacturing costs and subtracting the ending goods in process inventory.

Question 6

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year:
$\begin{array}{lrr}
&\text { Beginning}&\text { Ending }\ 
\text { Raw materials inventory } & \$ 57,000 & \$ 60,000 \
\text { Finished goods } & 68,000 & 60,000
\end{array}$
The raw materials used in manufacturing during the year totaled $118,000.Raw materials purchased during the year amount to:

Accepted Answer

The answer of The following information relates to the manufacturing...

Question 7

Compute cost of goods manufactured for this period given the following amounts.
$$\begin{array} { | l | r | } 
\hline \text { Endinig finished goods inventory } & \$ 66,000 \
\hline \text { Cost of goods sold } & 54,000 \
\hline \text { Beginning Finished goods } & 60,000 \
\text { inventory }\
\hline
\end{array}$$

Accepted Answer

The answer of Compute cost of goods manufactured for this...

Question 8

A manufacturing company has a beginning finished goods inventory of $14,600,raw material purchases of $18,000,cost of goods manufactured of $32,500,and an ending finished goods inventory of $17,800.The cost of goods sold for this company is:

Accepted Answer

Beg FG + COGM - End FG = COGS
$14,600 + $32,500 - $17,800 = $29,300

Question 9

Reference: 14_02
The following information is available for Talking Toys, Inc. for the current year:
 $\begin{array}{lr}
\text { Direct materials used } & \$ 12,500 \
\text { Goods in process, January 1 } & 50,000 \
\text { Goods in process, December 31 } & 37,000 \
\text { Total Factory overhead } & 5,500 \
\text { Direct labor used } & 26,500
\end{array}$ 
-The total manufacturing costs incurred during the year were:

Accepted Answer

The answer of Reference: 14_02
The following information is available for...

Question 10

A manufacturing statement is also known as a schedule or listing of the:

Accepted Answer

A manufacturing statement, also known as a cost of goods manufactured statement, lists the cost of all goods produced during a specific period. This includes the cost of raw materials used, factory supplies consumed, direct labor, and manufacturing overhead. The result of these costs is the total cost of goods manufactured. Therefore, the best choice is C – cost of goods manufactured.

Question 11

The following information is available for the year ended December 31:
$\begin{array}{lr}
\text { Beginning raw materials inventory } & \$ 2,500 \
\text { Raw materials purchases } & 4,000 \
\text { Ending raw materials inventory } & 3,000 \
\text { Office supplies expense } & 1,000
\end{array}$ 
The amount of raw materials used in production for the year is:

Accepted Answer

The amount of raw materials used is calculated as: Beginning Inventory + Purchases - Ending Inventory = $2,500 + $4,000 - $3,000 = $3,500.

Question 12

A manufacturing firm's cost of goods manufactured is equivalent to a merchandising firm's:

Accepted Answer

The cost of goods manufactured in a manufacturing firm is equivalent to the cost of goods purchased in a merchandising firm, as both represent the primary costs incurred to acquire the goods that are available for sale.

Question 13

Reference: 14_02
The following information is available for Talking Toys, Inc. for the current year:
 $\begin{array}{lr}
\text { Direct materials used } & \$ 12,500 \
\text { Goods in process, January 1 } & 50,000 \
\text { Goods in process, December 31 } & 37,000 \
\text { Total Factory overhead } & 5,500 \
\text { Direct labor used } & 26,500
\end{array}$ 
-The total cost of goods manufactured for the year was:

Accepted Answer

The total cost of goods manufactured is the sum of direct materials used, direct labor used, and factory overhead. Therefore, the total cost of goods manufactured for the year is $12,500 + $26,500 + $5,500 = $44,500.

Question 14

The beginning and ending finished goods inventories of a company were $91,000 and $94,000 respectively.If cost of goods sold equaled $800,000,what is the amount of cost of goods manufactured for this period?

Accepted Answer

Beg FG + COGM - End FG = COGS
$91,000 + COGM - $94,000 = $800,000
$(3,000) + COGM= $800,000
COGM= $803,000

Question 15

The beginning and ending finished goods inventories of the Prize Ring manufacturing company were $75,000 and $73,000 respectively.If cost of goods sold equaled $66,000,what is the amount of cost of goods manufactured for this period?

Accepted Answer

Beg FG + COGM - End FG = COGS
$75,000 + COGM - $73,000 = $66,000
$2,000 + COGM = $66,000
COGM = $64,000

Question 16

If beginning and ending goods in process inventories are $5,000 and $15,000,respectively,and cost of goods manufactured is $170,000,what is the total manufacturing cost for the period?

Accepted Answer

Mfg. costs + BGIP - EGIP = COGM
Mfg. costs = COGM - BGIP + EGIP
Mfg. costs = $170,000 - $5,000 + $15,000
Mfg. costs = $180,000

Question 17

Which of the following accounts would appear on a manufacturing statement?

Accepted Answer

A manufacturing statement includes costs related to production such as raw materials, factory insurance expired, and indirect labor, which are all part of manufacturing overhead or direct costs.

Question 18

Total manufacturing costs incurred during the year do not include:

Accepted Answer

Goods in process inventory, beginning balance, is not a cost incurred during the current year but is a balance carried forward from the previous year.

Question 19

Reference: 14_01
Use the following information from Hardy Co. for the current year:
 $\begin{array}{lr}
\text { Direct materials used } & \$ 5,000 \
\text { Direct Labor } & 7,000 \
\text { Total Factory overhead } & 5,100 \
\text { Beginning goods in process } & 3,000 \
\text { Ending goods in process } & 4,000
\end{array}$ 
-The total of Hardy Co.'s manufacturing costs added during the current year is:

Accepted Answer

The total manufacturing costs added during the year include direct materials, direct labor, and total factory overhead: $5,000 + $7,000 + $5,100 = $17,100.

Question 20

Which one of the following items is normally not a manufacturing cost?

Accepted Answer

General and administrative expenses are usually classified as period costs and relate to the overall operation of the company rather than the manufacturing process.

Quiz 14: Managerial Accounting Concepts and Principles