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1. Consider the following information: direct materials used totaled $137,800; d

ID: 2476541 • Letter: 1

Question

1.   Consider the following information: direct materials used totaled $137,800; direct labor amounted to $396,800; overhead was computed to be $789,600; Work in Process Inventory on January 1, 20x7, was $378,200; and Work in Process Inventory on December 31, 20x7, was $385,200. What was the cost of goods manufactured?
A)   $1,331,200
B)   $1,317,200
C)   $2,087,600
D)   $1,324,200


2.   In a trend analysis, an index number of 139 for 20x7 sales indicates that
A)   actual sales for 20x7 exceeded budgeted sales for 20x7 by 39 percent.
B)   sales for 20x7 were 139 percent of the sales for the same company in the base year.
C)   sales for 20x7 were 139 percent higher than sales for the same company in the base year.
D)   sales for 20x7 for this company were 139 percent of the sales figure of another company being used in the comparison.

3. The beginning finished goods inventory for Boston Co. was $401,050. Goods completed during the year were costed at $783,700. The ending finished goods inventory was dangerously low, having been reduced to $120,000. The cost of goods sold for the year for Boston Co. was
A. $936,300.
B. $807,850.
C. $1,064,750.
D. $663,700.

Explanation / Answer

Q1   B)   $1,317,200 Statement showing cost of goods Manufactured Particulars Amount Cost of direct raw materials used             137,800.00 Add Direct Labor               396,800.00 Add Manufacturing overhead             789,600.00 Total manufacturing costs          1,324,200.00 Plus: Beginning work-in-process inventory             378,200.00 Total work in process            1,702,400.00 Less: Ending work-in-process inventory           (385,200.00) Cost of Goods Manufactured          1,317,200.00 Q2 B)   sales for 20x7 were 139 percent of the sales for the same company in the base year. Q3   C. $1,064,750. Statement showing computations Particulars Amount Beginning Finished goods inventory             401,050.00 Add    Goods completed during the year             783,700.00 Goods Available for sale          1,184,750.00 Less Ending finished goods inventory           (120,000.00) Cost of goods sold          1,064,750.00