6. Which of the following is not considered a manufacturing cost? a. Wages paid

Question

6. Which of the following is not considered a manufacturing cost? a. Wages paid to assembly workers in an automobile factory b. Rubber purchased for the manufacturing of tires. c. Commissions paid to salespersons. d. Property taxes paid on factory equipment. QUESTIONS 7-10 ARE BASED ON THE FOLLOWING The Anthony Company reports the following information pertaining to its operating activities for the year: Ending Balance $10,000 $29,000 $52,000 Beginning Balance ning Balance Ending Balance Raw Material Work in Process Finished Goods $40,000 $60,000 $42,000 Direct Materials Purchased Direct Labor Costs Applied Manufacturing Overhead Applied $40,000 $21,000 $18,000 7. What is the direct material used during the year? a. $70,000 b. $40,000 c. $79,000 d. $109,000 8. What are the total manufacturing costs? a. $70,000 b. $40,000 c. $79,000 d. $109,000 9. What is the cost of finished goods manufactured during the year? a. $109,000 b. $140,000 c. $130,000 d. $70,000

Explanation / Answer

Answer

Answer 6

Answer : C. Commissions paid to salespersons

Answer 7

Answer : a. $70,000

Direct material used during year = Beginning balance + purchase – Ending balance

                                                            = $ 40,000 + $ 40000 - $10,000

                                                            = $ 70000

Answer 8

Answer : d. $ 109000

Total manufacturing cost = Direct material used + Direct labour costs applied + manufacturing overhead applied

= $ 70000 + $ 21,000 + $18,000

= $ 109000

Answer 9

Answer : b. $ 140,000

Cost of finished goods manufactured during year = Total manufacturing cost + opening work in process – ending work in process

= $ 109000 + $ 60,000 - $ 29000

= $ 140,000

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