Chapter 2: Basic Cost Management Concepts165.Refer to Figure 2-15. What is the gross margin (profit)?b166.Refer to Figure 2-15. What is the cost of goods sold?c167.Morton Manufacturing shows cost of goods sold for the month of March was $90,000. The finished goodsinventory was $15,000 on March 1 and $17,500 on March 31. Beginning and ending work-in-process inventorieswere $20,000 and $25,000, respectively. What was the cost of goods manufactured during March?a168.
Assume the following information for the Blue Knights Corporation for the year ended December 31, 2016:Sales$2,25Cost of goods manufactured for the year1,350Beginning finished goods inventory450Ending finished goods inventory495Selling and administrative expenses300
Chapter 2: Basic Cost Management ConceptsWhat is the cost of goods sold for the year ended December 31, 2016?a. $1,305b.$1,605c.$1,350d.$1,650ANSWER: RATIONALE: SUPPORTING CALCULATIONS: $1,350 + 450 - $495 = $1,305a
Chapter 2: Basic Cost Management Concepts169.Rebel Yell, Inc., recorded the following data for April:Beginning finished goods inventory$60,000Beginning work-in-process inventory40,000Ending work-in-process inventory80,000Ending finished goods inventory50,000Factory overhead costs200,000Direct materials used160,000Direct labor100,000What is the cost of goods manufactured for April?170.The records of the Williamson Company show the following information:Direct materials used$90,000Direct labor130,000Factory overhead150,000Beginning work-in-process inventory15,000Beginning finished goods inventory20,000Ending work-in-process inventory42,000Selling and administrative expenses37,500What was the cost of goods manufactured during the year?
Chapter 2: Basic Cost Management Concepts171.Which of the following is NOT an example of a difference between the income statement of a service organizationand the income statement of a manufacturing organization?a