{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 02 Inclass quiz_SOLN

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

This preview shows pages 1–2. Sign up to view the full content.

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-----------------------------

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}