33.Hardigan Manufacturing Company reported the following year-end information: b
ID: 2344600 • Letter: 3
Question
33.Hardigan Manufacturing Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $980,000; beginning finished goods inventory, $50,000; ending work in process inventory, $70,000; and ending finished goods inventory, $40,000. How much is Hardigan's cost of goods sold for the year?
a.$980,000
b.$990,000
c.$970,000
d.$1,000,000
35.
Hollern Combines, Inc. has $10,000 of ending finished goods inventory as of December 31, 2008. If beginning finished goods inventory was $5,000 and cost of goods sold was $20,000, how much would Hollern report for cost of goods manufactured?
a.$22,500
b.$5,000
c.$25,000
d.$15,000
37.
Overapplied manufacturing overhead exists when overhead assigned to work in process is
a.more than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.
b.less than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.
c.more than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.
d.less than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.
38.
Manufacturing costs include
a.direct materials and direct labor only.
b.direct materials and manufacturing overhead only.
c.direct labor and manufacturing overhead only.
d.direct materials, direct labor, and manufacturing overhead.
Explanation / Answer
Indirect labor is part of manufacturing overhead, which is a product cost. *Technically*, you can't tell, but if you're making assumptions, then the answer could be 380,000. The reason is, it really dependson what Zirc, Inc. includes in COGS. If there are other significant costs included, then the remainder would need to be allocated to those costs AND direct labor. If we're going by generalizations, though, then there are 3 main categories of costs in COGS- materials, labor, and overhead. Since they give us two amounts, in a general situation, the remainder would go to the third category- direct labor. Income taxes, selling and administrative expenses, and advertising. The rest are all part of manufacturing overhead, which is a product cost. 50,000+ 80,000+ 980,000= cost of goods available for sale 1,110,000 cost of goods available for sale- ending inventory= COGS. So- 1,110,000-(70,000+40,000)= 1,000,000
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