(WIP) ACC 350 Exam 1 Study Material

1=7-11 See
Inventory balances for the Jameson Company in October 2014 are as follows:
October 1, 2014 October 31, 2014
Raw materials $ 27,000 $21,000
Work in process 48,000 37,200
Finished goods 108,000 90,000
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were
$60,000 and $84,000, respectively.
3. Refer to the above. What are the total manufacturing costs ADDED to production in the period?
a. $186,000
b. $180,000
c. $144,000
d. $174,200
Figure 2-11
Information from the records of the Abel Corporation for July 2014 was as follows:
Sales $1,230,000
Selling and administrative expenses 210,000
Direct materials used 264,000
Direct labor 300,000
Factory overhead * 405,000
*variable overhead is $205,000, fixed overhead is $200,000
4. Refer to Figure 2-11. The variable product costs are
a. $ 969,000
b. $ 769,000
c. $ 764,000
d. $1,179,000
5. Refer to Figure 2-11. The total product cost is
a. $1,179,000
b. $ 969,000
c. $ 615,000
d. $ 764,000