Question 41 and 42 is based on the following manufacturing data: Beginning Endin
ID: 2385463 • Letter: Q
Question
Question 41 and 42 is based on the following manufacturing data:Beginning Ending
Direct material inventory 90,000 110,000
Work-in progress inventory180,000 120,000
Finished goods inventory 300,000 400,000
Purchased direct material 300,000
Direct labor 170,000
Factory overhead 190,000
Net sales 1,000,000
Period cost 280,000
41. What is cost of goods manufactured?
A. 640,000
B. 700,000
C. 820,000
D. Insufficient information to determine cost of goods manufactured
E. None of all above
42. What is the net profit?
A. 120,000
B. 180,000
C. 300,000
D. Insufficient information to determine the gross profit
E. None of all above
43. Which of the following statements describes variable cost?
A. This cost increases in direct proportion to increases in volume; its amount is constant for each unit produced
B. This cost is the combined amount of all the other costs
C. This cost remains constant overall volume levels within the productive capacity for the planning period
D. This cost increases when volume increases, but the increase is not constant for each unit produced
E. None of all above
44. Which of the following statement is not true about the fixed cost?
A. The total fixed costs are remain same regardless the number of products are produced.
B. The fixed costs per unit produced are increase when more products are produced.
C. Depreciation of factory equipment expense is one of the examples of fixed costs.
D. The mixed costs remain the same over the unit produced can be categorized as fixed costs.
E. None of all above
45. What is contribution margin?
A. The excess of sales revenues over fixed cost
B. The excess of variables cost over sales revenues
C. The excess of sales revenues over variables cost
D. The ratio of sales revenues over variables cost
E. None of all above
Explanation / Answer
41. What is cost of goods manufactured?
B. 700,000
Direct Materials Used
90,000+300,000-110,000 280,000
Direct labor 170,000
Factory overhead 190,000
Total manufacturing cost 640,000
Add : Beginning WIP 180,000
Less : Ending WIP -120,000
Cost of goods manufactured 700,000
42. What is the net profit?
A. 120,000
Net Sales 1,000,000
Cost of goods manufactured 700,000
Add : Beginning FG inventory 300,000
Less : Ending FG inventory -400,000
Add : Period cost 280,000 880,000
Net Profit 120,000
43. Which of the following statements describes variable cost?
A. This cost increases in direct proportion to increases in volume; its amount is constant for each unit produced
44. Which of the following statement is not true about the fixed cost?
B. The fixed costs per unit produced are increase when more products are produced.
45. What is contribution margin?
C. The excess of sales revenues over variables cost
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.