10. Dekin Company had checks outstanding totaling $6,400 on its May bank reconci

Question

10. Dekin Company had checks outstanding totaling $6,400 on its May bank reconciliation. In June, Dekin Company issued checks totaling $39,900. The July bank statement shows that $29,700 in checks cleared the bank in July. A check from one of Dekin Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Dekin Company's July bank reconciliation should be which of the following?
A. $19,600
B. $10,200
C. $16,600
D. $3,800


11. For 2006, Sparkman Company has cost of goods manufactured of $200,000, beginning finished goods inventory of $40,000, and ending finished goods inventory of $30,000. How much is cost of goods sold?
A. $210,000
B. $240,000
C. $190,000
D. $230,000


12. Brown Company has $30,000 of ending finished goods inventory as of December 31, 2008. If beginning finished goods inventory was $25,000 and cost of goods sold was $40,000, how much would Brown report for cost of goods manufactured?
A. $42,500
B. $25,000
C. $35,000
D. $45,000


13. A variable cost is a cost that does which of the following?
A. varies per unit at every level of activity
B. occurs at various times during the year
C. varies in total in proportion to changes in the level of activity
D. may or may not be incurred, depending on management's discretion

Explanation / Answer

10. Denkin company's july bank reconiciliation: Answer: C - $16,600 Answer: C - $16,600 Out standing checks in may = $6,400 Checks out standing in july = 39,900 - 29,700 Checks out standing in july = 10,200 Total checks out standing in july = 6,400 + 10,200 Checks out standing in july = $16,600 11. Cost of goods sold: Answer = A $210,000 Answer = A $210,000 Begining finished goods inventory = $40,000 Add: Cost of goods manufactured        = 200,000    Less: Cost of goods sold                      = xxxx Ending finished goods inventory   = 30,000 So cost of goods sold = Begeining finished goods inventory + cost of goods manufactured - Ending finished goods inventory Cost of goods sold = 40,000 + 200,000 - 30,000 Cost of goods sold = $210,000 12. Cost of goods manufactured: Answer = D, $45,000 Cost of goods manufactured = Cost of goods sold + Ending finished goods inventory - Begining finished goods inventory So cost of goods manufactured = 40,000 + 30,000 - 25,000 Cost of goods manufactured = $45,000 Answer = D, $45,000 Cost of goods manufactured = Cost of goods sold + Ending finished goods inventory - Begining finished goods inventory So cost of goods manufactured = 40,000 + 30,000 - 25,000 Cost of goods manufactured = $45,000 13. Answer = C Variable cost is a cost that varies in total in proportion to changes in the level of activity. It will not change per unit rather it will change in total according to the changes in the total volume.

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