1.

Mustang Corporation reports the following for the month of April:

Finished goods inventory, April 1	$	31,300
Finished goods inventory, April 30		25,500
Total cost of goods manufactured		118,700

The cost of goods sold for April is:

• $61,900.

• $124,500.

• $112,900.

• $173,700.

• $150,000.

2.

Current information for the Healey Company follows:

Beginning raw materials inventory	$	17,100
Raw material purchases		61,900
Ending raw materials inventory		18,500
Beginning work in process inventory		24,300
Ending work in process inventory		29,900
Direct labor		44,700
Total factory overhead		31,900

All raw materials used were traceable to specific units of product. Healey Company's direct materials used for the year is:

• $79,000.

• $63,300.

• $61,900.

• $60,500.

• $80,400.

3.

Richards Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the company follows:

Beginning raw materials inventory	$	17,000
Ending raw materials inventory		19,000
Raw material purchases		97,000
Beginning work in process inventory		47,000
Ending work in process inventory		32,000
Direct labor		137,000
Total factory overhead		67,000
Beginning finished goods inventory		62,000
Ending finished goods inventory		52,000

The company's cost of direct materials used, cost of goods manufactured and cost of goods sold is:

Multiple Choice

• D.

  $95,000

  $314,000

  $324,000

• B.

  $99,000

  $314,000

  $324,000

• 	Cost of Materials Used	Cost of Goods Manufactured	Cost of Goods Sold
  A.	$97,000	$314,000	$304,000

• E.

  $99,000

  $284,000

  $314,000

• C.

  $95,000

  $284,000

  $304,000

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