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(WIP) ACC 350 Exam 1 Study Material

Work in Process

P . breed 7-12 Inventory

P . breed 7-12 Inventory balances for Spiritlight Ventures for November 2014 are as follows: November 1, 2014 November 30, 2014 Materials $ 9,000 $ 7,000 Work in process 16,000 12,400 Finished goods 36,000 30,000 During November, purchases of direct materials were $18,000. Direct labor and factory overhead costs were $20,000 and $28,000, respectively. 6. The cost of goods manufactured in November was a. $68,000. b. $77,600. c. $74,000. d. $71,600. 7. The records for the previous year for Sarasota Boat Builders, Inc., shows the following data: Selling and administrative expenses $300,000 Direct materials used 530,000 Direct labor (100,000 hours) 600,000 Factory overhead application rate $5 per DLH The cost of goods sold is a. $1,630,000. b. $1,880,000. c. $1,600,000. d. $1,650,000. Inventories Beginning Ending Work in process $150,000 $160,000 Finished goods 80,000 50,000

P . 7-13 f- 8. The following information has been provided for Hopen Enterprises: What is the amount of factory overhead? a. $2,000 b. $2,200 c. $1,400 d. $5,500 Cost of goods manufactured $7,500 Work in process Beginning 1,200 Ending 1,400 Direct labor 4,000 Materials placed in production 1,500 Factory overhead ? 9. Morton Manufacturing shows cost of goods sold for the month of March was $90,000. The finished goods inventory was $15,000 on March 1 and $17,500 on March 31. Beginning and ending work-in-process inventories were $20,000 and $25,000, respectively. What was the cost of goods manufactured during March? a. $92,500 b. $90,000 c. $87,500 d. $97,500