The following information was provided by Grand Company for the year just ended: $\begin{array} { l r } \text { Decrease in finished goods inventory } & \$ 4,655 \\ \text { Sales } & \$ 500,000 \\ \text { Gross margin } & \$ 100,000 \end{array}$ What was the cost of goods manufactured for the year?

A) $95,345. B) $104,655. C) $395,345. D) $404,655. A) $95,345. B) $104,655. C) $395,345. D) $404,655.

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the year just ended. $\begin{array} { l r } \text { Sales } & \$ 910 \\ \text { Raw materials inventory, beginning } & \$ 80 \\ \text { Raw materials inventory, ending } & \$ 20 \\ \text { Purchases of raw materials } & \$ 100 \\ \text { Direct labour } & \$ 130 \\ \text { Manufacturing overhead } & \$ 200 \\ \text { Administrative expenses } & \$ 160 \\ \text { Selling expenses } & \$ 140 \\ \text { Work-in-process inventory, beginning } & \$ 40 \\ \text { Work-in-process inventory, ending } & \$ 10 \\ \text { Finished goods inventory, beginning } & \$ 130 \\ \text { Finished goods inventory, ending } & \$ 150 \end{array}$ -What was the cost of the raw materials used in production (in thousands of dollars)during the year?

A) $180. B) $40. C) $120. D) $160. A) $180. B) $40. C) $120. D) $160.

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the year just ended. $\begin{array} { l r } \text { Sales } & \$ 910 \\ \text { Raw materials inventory, beginning } & \$ 80 \\ \text { Raw materials inventory, ending } & \$ 20 \\ \text { Purchases of raw materials } & \$ 100 \\ \text { Direct labour } & \$ 130 \\ \text { Manufacturing overhead } & \$ 200 \\ \text { Administrative expenses } & \$ 160 \\ \text { Selling expenses } & \$ 140 \\ \text { Work-in-process inventory, beginning } & \$ 40 \\ \text { Work-in-process inventory, ending } & \$ 10 \\ \text { Finished goods inventory, beginning } & \$ 130 \\ \text { Finished goods inventory, ending } & \$ 150 \end{array}$ -What was the net income (in thousands of dollars)for the year?

A) $410. B) $110. C) $40. D) $180. A) $410. B) $110. C) $40. D) $180.

The accounts for a manufacturing company for an accounting period are listed below.Find the unknown amounts indicated by question marks. $\begin{array} { l r } \text { Sales } & \$ 39,000 \\ \text { Cost of goods sold } & ? \\ \text { Purchases of direct materials } & \$ 11,000 \\ \text { Direct labour } & \$ 5,000 \\ \text { Finished goods inventory, beginning } & \$ 5,000 \\ \text { Work in process, beginning } & \$ 800 \\ \text { Work in process, ending } & \$ 3,000 \\ \text { Gross margin } & \$ 11,700 \\ \text { Finished goods inventory, ending } & \$ 4,000 \\ \text { Accounts payable, beginning } & \$ 2,800 \\ \text { Accounts payable, ending } & \$ 1,000 \\ \text { Direct materials inventory, beginning } & \$ 3,000 \\ \text { Direct materials inventory, ending } & \$ 2,000 \\ \text { Indirect labour } & \$ 4,000 \\ \text { Indirect materials used } & \$ 3,000 \\ \text { Utilities expense, factory } & \$ 7,000 \end{array}$

Cost of goods sold = $39,000 - $11,700 =

Last month,a manufacturing company had the following operating results: $\begin{array} { l r } \text { Beginning finished goods inventory } & \$ 74,000 \\ \text { Ending finished goods inventory } & \$ 73,000 \\ \text { Sales } & \$ 464,000 \\ \text { Gross margin } & \$ 32,000 \end{array}$ What was the cost of goods manufactured for the month?

A) $413,000 B) $411,000 C) $412,000 D) $463,000 A) $413,000 B) $411,000 C) $412,000 D) $463,000

Exam 2: Cost Terms, Concepts, and Classifications

The following information was provided by Grand Company for the year just ended: Decrease in finished goods inventory \ 4,655 Sales \ 500,000 Gross margin \ 100,000 What was the cost of goods manufactured for the year?

(Multiple Choice)

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Question 81

Which of the following best defines an opportunity cost?

(Multiple Choice)

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Question 82

Stony Electronics Corporation manufactures a portable radio designed for mounting on the wall of the bathroom.The following list represents some of the different types of costs incurred in the manufacture of these radios: 1)The plant manager's salary. 2)The cost of heating the plant. 3)The cost of heating executive offices. 4)The cost of printed circuit boards used in the radios. 5)Salaries and commissions of company salespersons. 6)Depreciation on office equipment used in the executive offices. 7)Depreciation on production equipment used in the plant. 8)Wages of janitorial personnel who clean the plant. 9)The cost of insurance on the plant building. 10)The cost of electricity to light the plant. 11)The cost of electricity to power plant equipment. 12)The cost of maintaining and repairing equipment in the plant. 13)The cost of printing promotional materials for trade shows. 14)The cost of solder used in assembling the radios. 15)The cost of telephone service for the executive offices. Required: Classify each of the items above as product (inventoriable)cost or period (noninventoriable)costs for the purpose of preparing external financial statements.

(Essay)

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Question 83

Which of the following statements regarding variable cost is true?

(Multiple Choice)

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Question 84

For a lamp manufacturing company,the cost of the insurance on its vehicles that deliver lamps to customers is best described as a:

(Multiple Choice)

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Question 85

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the year just ended. Sales \ 910 Raw materials inventory, beginning \ 80 Raw materials inventory, ending \ 20 Purchases of raw materials \ 100 Direct labour \ 130 Manufacturing overhead \ 200 Administrative expenses \ 160 Selling expenses \ 140 Work-in-process inventory, beginning \ 40 Work-in-process inventory, ending \ 10 Finished goods inventory, beginning \ 130 Finished goods inventory, ending \ 150 -What was the cost of the raw materials used in production (in thousands of dollars)during the year?

(Multiple Choice)

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Question 86

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the year just ended. Sales \ 910 Raw materials inventory, beginning \ 80 Raw materials inventory, ending \ 20 Purchases of raw materials \ 100 Direct labour \ 130 Manufacturing overhead \ 200 Administrative expenses \ 160 Selling expenses \ 140 Work-in-process inventory, beginning \ 40 Work-in-process inventory, ending \ 10 Finished goods inventory, beginning \ 130 Finished goods inventory, ending \ 150 -What was the net income (in thousands of dollars)for the year?

(Multiple Choice)

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Question 87

Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?

(Multiple Choice)

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Question 88

The advertising costs incurred by Pepsi to air its commercials during the hockey season can best be described as a:

(Multiple Choice)

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Question 89

During the month of June,Reardon Company incurs $17,000 of direct labour and $8,500 of manufacturing overhead,and purchases $15,000 of raw materials.Between the beginning and the end of the month,the raw-materials inventory increases by $2,000,the finished goods inventory increases by $1,500,and the work-in-process inventory decreases by $3,000.What is the cost of goods manufactured?

(Multiple Choice)

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Question 90

The accounts for a manufacturing company for an accounting period are listed below.Find the unknown amounts indicated by question marks. Sales \ 39,000 Cost of goods sold ? Purchases of direct materials \ 11,000 Direct labour \ 5,000 Finished goods inventory, beginning \ 5,000 Work in process, beginning \ 800 Work in process, ending \ 3,000 Gross margin \ 11,700 Finished goods inventory, ending \ 4,000 Accounts payable, beginning \ 2,800 Accounts payable, ending \ 1,000 Direct materials inventory, beginning \ 3,000 Direct materials inventory, ending \ 2,000 Indirect labour \ 4,000 Indirect materials used \ 3,000 Utilities expense, factory \ 7,000

(Essay)

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Question 91

Last month,a manufacturing company had the following operating results: Beginning finished goods inventory \ 74,000 Ending finished goods inventory \ 73,000 Sales \ 464,000 Gross margin \ 32,000 What was the cost of goods manufactured for the month?

(Multiple Choice)

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Question 92

The gross margin for Cushing Company for the first quarter of last year was $325,000 when sales were $700,000.The beginning inventory of finished goods was $60,000,and the ending inventory of finished goods was $85,000.What was the cost of goods manufactured for the first quarter?

(Multiple Choice)

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Question 93

The following information was provided by Grand Company for the year just ended: Decrease in finished goods inventory \ 4,655 Sales \ 500,000 Gross margin \ 100,000 What was the cost of goods manufactured for the year?

Which of the following best defines an opportunity cost?

Which of the following statements regarding variable cost is true?

For a lamp manufacturing company,the cost of the insurance on its vehicles that deliver lamps to customers is best described as a:

Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?

The advertising costs incurred by Pepsi to air its commercials during the hockey season can best be described as a:

Last month,a manufacturing company had the following operating results: Beginning finished goods inventory \ 74,000 Ending finished goods inventory \ 73,000 Sales \ 464,000 Gross margin \ 32,000 What was the cost of goods manufactured for the month?

The gross margin for Cushing Company for the first quarter of last year was $325,000 when sales were $700,000.The beginning inventory of finished goods was $60,000,and the ending inventory of finished goods was $85,000.What was the cost of goods manufactured for the first quarter?

Managerial Accounting and the Business Environment

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: A Tool to Aid Decision Making

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Variable Costing: A Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis

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