ACC 560 Quiz 1 Tutorial and study guide
Ogleby Inc.’s accounting records reflect the following inventories:
Dec.31, 2012
Dec.31, 2013
Raw materials inventory
$120,000
$ 96,000
Work in process inventory
156,000
174,000
Finished goods inventory
150,000
138,000
During 2013, Ogleby purchased $840,000 of raw materials, incurred direct labor costs of $150,000, and incurred manufacturing overhead totaling $192,000.
How much is total manufacturing costs incurred during 2013 for Ogleby?
$1,206,000
$1,182,000
$1,200,000
$1,188,000
Using $2,500,000 as the total manufacturing costs, compute the cost of goods manufactured using the following information.
Raw materials inventory, January 1
$ 20,000
Raw materials inventory, December 31
40,000
Work in process, January 1
18,000
Work in process, December 31
12,000
Finished goods, January 1
40,000
Finished goods, December 31
32,000
Raw materials purchases
1,400,000
Direct labor
560,000
Factory utilities
150,000
Indirect labor
50,000
Factory depreciation
400,000
Operating expenses
420,000
$2,492,000.
$2,506,000.
$2,494,000.
$2,508,000.
Dolan Company’s accounting records reflect the following inventories:
Dec.31, 2013
Dec.31, 2012
Raw materials inventory
$310,000
$260,000
Work in process inventory
300,000
160,000
Finished goods inventory
190,000
150,000
During 2013, $600,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
Dolan Company’s total manufacturing costs incurred in 2013 amounted to
$1,530,000.
$1,490,000.
$1,390,000.
$1,580,000
6. Cost of goods manufactured in a manufacturing company is analogous to
cost of goods purchased in a merchandising company.
ending inventory in a merchandising company.
beginning inventory in a merchandising company.
cost of goods available for sale in a merchandising company.
8. Edmiston Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $780,000; beginning finished goods inventory, $50,000; ending work in process inventory, $70,000; and ending finished goods inventory, $40,000. How much is Edmiston’s cost of goods sold for the year?
$770,000
$800,000
$780,000
$790,000
9. Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $440,000, what was the cost of raw materials purchased?
$416,000.
$470,000.
$464,000.
$440,000.
10. Which of the following statements about internal reports is not true?
The content of internal reports may extend beyond the double-entry accounting system.
Most internal reports are summarized rather than detailed.
Internal reports may show all amounts at market values.
Internal reports may discuss prospective events.
11. Which of the following is not a management function?
Constraining
Planning
Controlling
Directing
12. The subtotal, “Cost of goods manufactured” appears on
a merchandising company’s income statement.
a manufacturing company’s income statement.
both a manufacturing and a merchandising company’s income statement.
neither a merchandising nor a manufacturing company’s income statement.
13. Samson Company reported total manufacturing costs of $300,000, manufacturing overhead totaling $52,000, and direct materials totaling $64,000. How much is direct labor cost?
$184,000
$416,000
$116,000
Cannot be determined from the information provided
15. What is work in process inventory generally described as?
Beginning stage production costs associated with labor costs dealing with bringing in raw materials from the shipping docks
Costs applicable to units that have been started in production but are only partially completed
Costs associated with the end stage of manufacturing that are almost always complete and ready for customers
Costs strictly associated with direct labor
