1. The accounting records of Georgia Company revealed the following costs: direct
materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000;
and selling and administrative expenses, $220,000. Georgia's product costs total:
E. some other amount.
2. Yang Corporation recently computed total product costs of $567,000 and total period
costs of $420,000, excluding $35,000 of sales commissions that were overlooked by the
company's administrative assistant. On the basis of this information, Yang's income
statement should reveal operating expenses of:
3. Which of the following equations is used to calculate cost of goods sold during the
4. Holden Industries began July with a finished-goods inventory of $48,000. The finished-
goods inventory at the end of July was $56,000 and the cost of goods sold during the
month was $125,000. The cost of goods manufactured during July was:
5. Variable costs are costs that:
A. vary inversely with changes in activity.
B. vary directly with changes in activity.
C. remain constant as activity changes.
D. decrease on a per-unit basis as activity increases.
E. increase on a per-unit basis as activity increases.