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Chapter 02 Inclass quiz_SOLN

Chapter 02 Inclass quiz_SOLN - 150,000 Manufacturing...

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Acc 200P Name: ________________________ Lab Section #_________________ Chapter 2 SOLUTION Problem I: Indicate by circling either “yes” or “no” which costs would be classified as “Manufacturing Overhead” in a traditional manufacturing environment? a. Direct materials used Yes No b. Indirect materials used Yes No c. Salary of assembly-line worker Yes No d. Salary of the company president Yes No e. Repair costs for factory machinery Yes No Problem II: Use the following information to answer the questions below: Beginning of year End of year Raw materials inventory -------- $ 6,000 $ 4,000 Work-in-process inventory ----- 50,000 70,000 Finished goods inventory ------- 20,000 14,000 In addition, the following information is also available: Raw materials purchased during the year ------------------------ $ 70,000 Direct labor incurred during the year-----------------------------
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Unformatted text preview: 150,000 Manufacturing overhead incurred during the year--------------120,000 Marketing and Administrative expenses during the year------40,000 A. What was the cost of raw material used during the year? Answer: _ $72,000 ___ B. What was cost of goods manufactured during the year? Answer: _ $322,000 C. What was cost of goods sold during the year? Answer: _ $328,000 ____ Beginning RM $ 6,000 + RM purchases 70,000- Ending RM (4,000) RM used (transferred to WIP) $ 72,000 Beginning WIP $ 50,000 + RM used 72,000 + DL 150,000 + MOH 120,000 Subtotal 392,000- Ending WIP (70,000) CGM (transferred to FG) $ 322,000 Beginning FG $ 20,000 + CGM 322,000 Cost of Goods Available for Sale 342,000- Ending FG (14,000) CGS $ 328,000...
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