BUS MGT QUES with calculations-If the cost of goods manufactured for the year was $396,000

BUS MGT QUES with calculations-If the cost of goods manufactured for the year was $396,000

1. [The following information applies to the questions displayed below.]

Finished goods inventory, January 1, 2011 $ 30,400

Finished goods inventory, December 31, 2011 $ 25,200

If the cost of goods manufactured for the year was $396,000, what was the cost of goods sold for the year?

$401,200.

None of these.

$396,000.

$406,400.

$411,600.

2. Yang Corporation recently computed total product costs of $579,000 and total period costs of $480,000, excluding $41,000 of sales commissions that were overlooked by the company's administrative assistant. On the basis of this information, Yang's income statement should reveal operating expenses of:

$41,000.

$620,000.

$579,000.

$480,000.

$521,000.

3. The accounting records of Diego Company revealed the following costs, among others:

Factory insurance $ 35,000

Raw material used 258,000

Customer entertainment 17,000

Indirect labor 48,000

Depreciation on salespersons' cars 31,000

Production equipment rental costs 74,000

Calculate the total manufacturing overhead for the company.

$157,000.

$463,000.

None of these.

$188,000.

$205,000.

4. Carolina Plating Company reported a cost of goods manufactured of $523,000, with the firm's year-end balance sheet revealing work in process and finished goods of $76,000 and $140,000, respectively. If supplemental information disclosed raw materials used in production of $87,000, direct labor of $141,000, and manufacturing overhead of $241,000, the company's beginning work in process must have been:

None of these.

$22,000.

$393,000.

$130,000.

$55,000.

5. The accounting records of Dolphin Company revealed the following information:

Total manufacturing costs $ 760,000

Work-in-process inventory, Jan. 1 79,000

Work-in-process inventory, Dec. 31 101,000

Finished-goods inventory, Jan. 1 169,000

Finished-goods inventory, Dec. 31 146,000

Dolphin's cost of goods sold is:

None of these.

$761,000.

$759,000.

$783,000.

$738,000.

6. [The following information applies to the questions displayed below.]

Raw materials inventory, January 1, 2011 $ 34,000

Raw materials inventory, December 31, 2011 $ 28,200

10_29_2012

If purchases of raw materials were $150,000 during the year, what was the amount of raw materials used during the year?

$150,000.

$155,800.

$161,600.

$144,200.

None of these.

7. Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year:

Month Utilities Machine Hours

January $9,200 850

February 8,860 770

March 9,450 860

April 9,860 970

May 10,240 1,000

June 9,650 950

Using the high-low method, the utilities cost associated with 1,030 machine hours would be:

$10,420.

$10,140.

$10,330.

$10,290.

an amount other than those listed above.