Exam 10: Cost-Volume-Profit

Finished goods inventory does not appear on a cost of goods manufactured schedule.

The balanced scorecard approach attempts to maintain as little inventory on hand as possible.

Wood Company has beginning work in process inventory of $138000 and total manufacturing costs of $477000.If cost of goods manufactured is $480000 what is the cost of the ending work in process inventory?

The function that pertains to keeping the activities of the enterprise on track is

The total cost of a finished product does notgenerally contain equal amounts of materials labor and overhead costs.

Using the following information compute the direct materials used. Raw materials inventory, January 1 \ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,700,000 Direct labor 760,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000

Cost of goods manufactured is calculated as follows:

Direct materials become a cost of goods manufactured when they are acquired not when they are used.

Using $3040000 as the cost of goods manufactured compute the cost of goods sold using the following information. Raw materials inventory, January 1 \ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,700,000 Direct labor 760,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000

Given the following data for Mehring Company compute (A) total manufacturing costs and (B) cost of goods manufactured: Direct materials used \ 230,000 Beginning work in process \ 30,000 Direct labor 150,000 Ending work in process 15,000 Manufacturing overhead 255,000 Beginning finished goods 38,000 Operating expenses 263,000 Ending finished goods 23,000 () () a. \ 620,000 \ 650,000 b. \ 635,000 \ 620,000 c. \ 635,000 \ 650,000 d. \ 650,000 \ 665,000

Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.

What is "balanced" in the balanced scorecard approach?

In a manufacturing company balance sheet manufacturing inventories are reported in the current assets section in the order of their expected use in production.

A manufacturing process requires small amounts of glue.The glue used in the production process is classified as a(n)

Raw materials are equal to direct materials minus indirect materials.

Using $3000000 as the total manufacturing costs compute the cost of goods manufactured using the following information. Raw materials inventory, January 1 \ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,700,000 Direct labor 760,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000

Finished goods inventory for a manufacturing company is equivalent to inventory for a merchandising company.

Manufacturing costs include

Laflin Company reported the following year-end information: Beginning work in process inventory \ 1,080,000 Beginning raw materials inventory 300,000 Ending work in process inventory 900,000 Ending raw materials inventory 480,000 Raw materials purchased 960,000 Direct labor 900,000 Manufacturing overhead 720,000 Laflin Company's cost of goods manufactured for the year is

Period costs include selling and administrative expenses.