Given the following information,determine the cost of goods sold. \[\begin{array} { | l | r | } \hline \text { Direct Labor Incurred } & \$ 61,000 \\ \hline \text { Manufacturing Overhead Incurred } & 176,500 \\ \hline \text { Direct Materials Used } & 154,000 \\ \hline \text { Finished Goods Inventory, Jan. 1 } & 198,000 \\ \hline \text { Finished Goods Inventory, Dec. } 31 & 98,500 \\ \hline \text { Work-in-Process Inventory, Jan. 1 } & 222,000 \\ \hline \text { Work-in-Process Inventory, Dec. 31 } & 109,000 \\ \hline \end{array}\]

A) $504,500 B) $613,500 C) $604,000 D) $296,500 A) $504,500 B) $613,500 C) $604,000 D) $296,500

Doggie Delights manufactures its own brand of pet toys.At the end of June,2019 the accounting records showed the following: $\begin{array}{|l|r|r|} \hline \text { Inventories: } & \text { Beginning } &{\text { Ending }} \\ \hline \text { Direct Materials } & \$ 14,200 & \$ 9,600 \\ \hline \text { Work-in-Process } & 0 & 3,600 \\ \hline \text { Finished Goods } & 0 & 6,800 \\ \hline \text { Other Information: } & & \\ \hline \text { Direct materials purchases } & & 40,000 \\ \hline \text { Plant janitorial services } & & 4,200 \\\hline \text { Delivery costs } & & 2,900 \\ \hline \text { Sales revenue } & & 206,000 \\\hline \text { Utilities for plant } & & 10,200 \\ \hline \text { Rent on plant } & & 27,000 \\ \hline \text { Customer service hotline costs } & & 3,000 \\ \hline \text { Direct labor } & & 29,000\\ \hline \end{array}$ (a)Prepare a schedule of cost of goods manufactured for Doggie Delights and (b)Prepare an income statement for Doggie Delights for the year ended June 30,2019

(a) Doggie Delights Schedule of Cost of

Mars Supplies Company provided the following information for the year: $\begin{array}{|l|r|} \hline\text { Beginning Balance - Work-in-Process Inventory } & \$ 24,000 \\ \hline \text { Ending Balance - Work-in-Process Inventory } & 58,000 \\ \hline \text { Beginning Balance - Direct Materials Inventory } & 85,000 \\ \hline \text { Ending Balance - Direct Materials Inventory } & 61,000 \\ \hline \text { Purchases - Direct Materials } & 359,000 \\ \hline \text { Direct Labor } & 470,000 \\ \hline \text { Indirect Labor } & 21,000 \\ \hline \text { Depreciation on Factory Plant and Equipment } & 24,000 \\ \hline \text { Plant Utilities and Insurance } & 268,000\\\hline \end{array}$ What was the amount of the manufacturing overhead costs?

A) $313,000 B) $45,000 C) $292,000 D) $491,000 A) $313,000 B) $45,000 C) $292,000 D) $491,000

The following information relates to Myer,Inc.: $\begin{array}{|l|r|} \hline \text { Advertising Costs } & \$ 10,600 \\ \hline \text { Sales Salary } & 10,000 \\ \hline \text { Sales Revenue } & 500,000 \\ \hline \text { President's Salary } & 230,000 \\ \hline \text { Office Rent } & 60,500 \\\hline \text { Manufacturing Equipment Depreciation } & 1200 \\ \hline \text { Indirect Materials Used } & 8000 \\ \hline \text { Indirect Labor } & 13,000 \\ \hline \text { Factory Repair and Maintenance } & 920 \\\hline \text { Direct Materials Used } & 27,500 \\ \hline \text { Direct Labor } & 36,000 \\ \hline \text { Delivery Vehicle Depreciation } & 1550 \\ \hline \text { Administrative Salaries } & 22,000\\ \hline \end{array}$ How much were Myer's product costs?

A) $604,650 B) $252,000 C) $510,600 D) $86,620 A) $604,650 B) $252,000 C) $510,600 D) $86,620

Exam 16: Introduction to Managerial Accounting

Connie is analyzing the financial statements of MegaMart and Bullseye Company.She wants to invest in one of the companies and is trying to decide which company has the better past performance.Connie is examining ________.

(Multiple Choice)

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(35)

Question 121

Mason Cabinet Company sells standard kitchen cabinets.The following information summarizes Mason's operating activities for the year: Selling and Administrative Expenses \ 42,750 Purchases 85,700 Sales Revenue 154,500 Merchandise Inventory, January 1 12,500 Merchandise Inventory, December 31 16,200 Mason sold 950 cabinets during the year. Calculate the operating income for the year. Compute the unit cost for one cabinet (Round to two decimal places.)

(Essay)

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Question 122

Given the following information,determine the cost of goods sold. Direct Labor Incurred \ 61,000 Manufacturing Overhead Incurred 176,500 Direct Materials Used 154,000 Finished Goods Inventory, Jan. 1 198,000 Finished Goods Inventory, Dec. 31 98,500 Work-in-Process Inventory, Jan. 1 222,000 Work-in-Process Inventory, Dec. 31 109,000

(Multiple Choice)

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Question 123

Strategic planning focuses on short term actions while operational planning involves developing long-term strategies.

(True/False)

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Question 124

Managerial accounting information for a company is primarily used by ________.

(Multiple Choice)

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Question 125

Selling and administrative expenses are subtracted from gross profit to obtain operating income.

(True/False)

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Question 126

Describe the flow of product costs for a manufacturer.

(Essay)

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Question 127

Which of the following statements is true of managerial accounting?

(Multiple Choice)

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Question 128

The cost of goods sold is added to net sales revenue to determine gross profit.

(True/False)

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Question 129

If a merchandising company determines that the unit cost to purchase a product is less than the unit cost to manufacture the product,the company should make a decision to begin manufacturing the product

(True/False)

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Question 130

Freight costs paid to ship raw materials to a company warehouse are considered product costs.

(True/False)

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Question 131

The salary of a manufacturing plant manager will be included in manufacturing overhead.

(True/False)

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Question 132

Doggie Delights manufactures its own brand of pet toys.At the end of June,2019 the accounting records showed the following: Inventories: Beginning Ending Direct Materials \ 14,200 \ 9,600 Work-in-Process 0 3,600 Finished Goods 0 6,800 Other Information: Direct materials purchases 40,000 Plant janitorial services 4,200 Delivery costs 2,900 Sales revenue 206,000 Utilities for plant 10,200 Rent on plant 27,000 Customer service hotline costs 3,000 Direct labor 29,000 (a)Prepare a schedule of cost of goods manufactured for Doggie Delights and (b)Prepare an income statement for Doggie Delights for the year ended June 30,2019

(Essay)

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Question 133

A corporation used $34,000 of direct materials.It incurred $74,000 in direct labor costs and $112,500 in manufacturing overhead costs during the period.What is the cost of goods manufactured if the beginning and ending Work-in-Process Inventories were $27,500 and $20,500,respectively?

(Multiple Choice)

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Question 134

The three categories of period costs are direct materials,direct labor,and manufacturing overhead.

(True/False)

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Question 135

Mars Supplies Company provided the following information for the year: Beginning Balance - Work-in-Process Inventory \ 24,000 Ending Balance - Work-in-Process Inventory 58,000 Beginning Balance - Direct Materials Inventory 85,000 Ending Balance - Direct Materials Inventory 61,000 Purchases - Direct Materials 359,000 Direct Labor 470,000 Indirect Labor 21,000 Depreciation on Factory Plant and Equipment 24,000 Plant Utilities and Insurance 268,000 What was the amount of the manufacturing overhead costs?

(Multiple Choice)

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Question 136

Which of the following would be considered a product cost for a manufacturing company?

(Multiple Choice)

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Question 137

Which of the following is a product cost for a manufacturing company?

(Multiple Choice)

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Question 138

The following information relates to Myer,Inc.: Advertising Costs \ 10,600 Sales Salary 10,000 Sales Revenue 500,000 President's Salary 230,000 Office Rent 60,500 Manufacturing Equipment Depreciation 1200 Indirect Materials Used 8000 Indirect Labor 13,000 Factory Repair and Maintenance 920 Direct Materials Used 27,500 Direct Labor 36,000 Delivery Vehicle Depreciation 1550 Administrative Salaries 22,000 How much were Myer's product costs?

(Multiple Choice)

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Question 139

At the beginning of the year,Swift,Inc.'s Work-in-Process Inventory account had a balance of $124,000.During the year,$250,000 of direct materials were used in production,and $72,000 of direct labor costs were incurred.Manufacturing overhead amounted to $832,000.The cost of goods manufactured was $676,000.What is the balance in the Work-in-Process Inventory account on December 31?

(Multiple Choice)

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Question 140

Connie is analyzing the financial statements of MegaMart and Bullseye Company.She wants to invest in one of the companies and is trying to decide which company has the better past performance.Connie is examining ________.

Strategic planning focuses on short term actions while operational planning involves developing long-term strategies.

Managerial accounting information for a company is primarily used by ________.

Selling and administrative expenses are subtracted from gross profit to obtain operating income.

Describe the flow of product costs for a manufacturer.

Which of the following statements is true of managerial accounting?

The cost of goods sold is added to net sales revenue to determine gross profit.

If a merchandising company determines that the unit cost to purchase a product is less than the unit cost to manufacture the product,the company should make a decision to begin manufacturing the product

Freight costs paid to ship raw materials to a company warehouse are considered product costs.

The salary of a manufacturing plant manager will be included in manufacturing overhead.

A corporation used $34,000 of direct materials.It incurred $74,000 in direct labor costs and $112,500 in manufacturing overhead costs during the period.What is the cost of goods manufactured if the beginning and ending Work-in-Process Inventories were $27,500 and $20,500,respectively?

The three categories of period costs are direct materials,direct labor,and manufacturing overhead.

Which of the following would be considered a product cost for a manufacturing company?

Which of the following is a product cost for a manufacturing company?

Accounting Information Systems

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

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