(7 points) Ranch Company\'s accounting records reflect the following inventories
ID: 2469377 • Letter: #
Question
(7 points) Ranch Company's accounting records reflect the following inventories:
Dec. 31, 2014
Dec. 31, 2013
Raw materials inventory
$554,000
$546,000
Work in process inventory
486,000
429,000
Finished goods inventory
270,000
225,000
During 2014, $729,000 of raw materials were purchased, direct labor costs amounted to $1,039,000, and manufacturing overhead incurred was $1,290,000.
If Ranch Company's cost of goods manufactured for 2014 amounted to $2,160,000, its cost of goods sold for the year is
Select one:
a. $2,205,000.
b. $2,115,000.
c. $2,152,000.
d. $2,103,000.
(11 Points)Radel Company begins operations on January 1, 2012.Information from job costs sheets shows the following:
Manufacturing Costs Assigned by month:
Job No.
January
February
March
100
$15,000
$17,000
101
$12,520
$9,000
$6,000
102
$ 5,000
103
$13,000
$7,200
104
$ 8,000
$4,600
Job 102 was completed in January. Job 100 was completed in February, and Jobs 101 and 103 were completed in March.Each job was sold for 60% above its cost in the month following completion.
Compute the balance in Finished Goods Inventory at the end of March.
Select one:
a. $47,000
b. $28,632
c. $47,720
d. $17,800
(11 points) During 2014, Tike Manufacturing expected Job No. 59 to cost $623,000 of overhead, $1,018,000 of materials, and $430,000 in labor. Tike applied overhead based on direct labor cost. Actual production required an overhead cost of $625,000, $1,004,000 in materials used, and $330,000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?
Select one:
a. $144,884 overapplied
b. $144,884 underapplied
c. $146,884 overapplied
d. $146,884 underapplied
Dec. 31, 2014
Dec. 31, 2013
Explanation / Answer
Cost of goods sold Cost of goods manufactured 21,60,000 Add: Beginning finished goods inventory 2,25,000 Less: Ending finished goods inventory -2,70,000 Cost of goods sold 21,15,000 Job 101 27,520 Job 103 20,200 47,720
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