1. Joel Inc. has the following information for year 20X1:

Beginning inventory Ending inventory

Raw Material inventory $40,000 $30,000

Work-in-Process inventory $35,000 $18,000

Finished Goods inventory $30,000 $40,000

Additional information for the year is as follows:

Raw materials purchases: $200,000

Direct labor: $150,000

Manufacturing overhead costs: $160,000

Compute the cost of goods manufactured? and Compute the cost of goods sold for Joel Inc?

2.

Match the correct answer to each question. Each option may be used more than once or not at all. Hint: first determine whether an account is an expense or inventory account and then consider the different treatment of expenses vs. assets (inventory)

	Finished Goods
	Work-in-Process
	Cost of Goods Sold
	Raw Materials

A.	expenses all materials used both direct and indirect.
B.	is an inventory account of raw materials both direct and indirect.
C.	expenses the cost of partially completed goods sold.
D.	is an inventory account of partially completed goods.
E.	expenses the cost of goods that are finished and waiting in inventory.
F.	is an inventory account of goods that are completed
G.	is an expense account of the cost of items sold.
H.	is an inventory account of items that are sold.

3. Match the correct answer to the question. Each option may be used more than once

	When would Cost of Goods Sold be debited?
	When would Manufacturing Overhead be debited?
	When would Finished Goods be debited?
	When would Manufacturing Overhead be credited?
	When would Finished Goods be credited?

A.	to record actual indirect labor, actual indirect materials, rent or accumulated depreciation on the plant, actual utility expense incurred.
B.	when goods are finished.
C.	when good are sold.
D.	to apply overhead to production