Use the following to answer questions 19-20: The following data (in thousands of

Question

Use the following to answer questions 19-20: The following data (in thousands of dollars) have been taken from the accounting records of Karmin Corporation for the just completed year $960 S50 $70 $190 $210 $220 $90 $140 $20 S30 $170 S90 Sales Raw materials inventory, beginning Raw materials inventory, ending Purchases of raw materials Direct labor Manufacturing overhead (actual& applied) Selling expenses Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending Use these data to answer the following series of questions. 19. The cost of goods manufactured (finished) for the year (in thousands of dollars) was: A) S630 B) S590. C) $610 D) $620 20. The cost of goods sold for the year (in thousands of dollars) was: A) S760 B) S510. C) $670. D) $680 22. Haagen Inc. is a merchandising company. Last month the company's cost of goods sold was $92,000. The company's beginning merchandise inventory was $14,000 and its ending merchandise inventory was S16,000. What was the total amount of the company's merchandise purchases for the month? A) $92,000 B) $94,000 C) $122,000 D) S90,000 23. Which of the following costs A) Sales commissions B) Manufacturing overhead. C) Direct material. D) Administrative salaries. elements 24. Within the relevant range. which of the following is false: A) variable cost per unit decreases as production decreases. B) fixed cost per unit increases as production decreases. C) total fixed cost remains constant as production decreases. D) total variable cost decreases as production decreases. 26. Within the relevant range, a curvilinear cost function can often be graphed as a: A) straight line. B) jagged line. C) vertical line. D) curved line. E) horizontal line.

Explanation / Answer

Solution 19:

Hence option B is the right choice

Solution 20:

Hence option C is the right choice.

Solution 22:

Purchase of merchandise = Cost of goods sold + Ending inventory - opening inventory

= $92,000 + $16,000- $14,000 = $94,000

Hence option b is the right choice.

Solution 23:

Manufacturing overhead contains both fixed and variable elements.

Hence option B is the right choice.

Computation of Cost of Goods Manufactured Particulars Details Amount Raw Material inventory - beginning $50.00 Purchases of raw material $190.00 Ending inventory of raw material $70.00 Raw material consumption $170.00 Direct labor $210.00 Manufacturing overhead $220.00 WIP Inventory Beginning $20.00 WIP Inventory Ending -$30.00 Cost of goods manufactured $590.00

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