1.In the Schedule of Cost of Goods Manufactured, Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory Ending work in process inventory.

A.True

B. False

Koczela Inc. has provided the following data for the month of May:

Inventories:

	Beginning		Ending
Work in process	$	25,000	$	20,000
Finished goods	$	54,000	$	58,000

Additional information:

Direct materials	$	65,000
Direct labor cost	$	95,000
Manufacturing overhead cost incurred	$	71,000
Manufacturing overhead cost applied to Work in Process	$	69,000

Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.

The cost of goods manufactured for May is:

a.$236,000

b.$229,000

c.$234,000

d. $231,000

3.When raw materials are purchased, they are recorded as an asset.

a. True

b. False

4.Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $364,320. At the end of the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for the year was overapplied by $8,240, and the actual manufacturing overhead was $359,680. The predetermined overhead rate for the year must have been closest to:

a.$15.33 per direct labor-hour

b.$15.46 per direct labor-hour

c.$14.99 per direct labor-hour

d.$15.18 per direct labor-hour

5. Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $56,000 and at the end of the month was $30,400. The cost of goods manufactured for the month was $214,000. The actual manufacturing overhead cost incurred was $56,200 and the manufacturing overhead cost applied to Work in Process was $59,600. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is:

a.$188,400

b.$214,000

c.$236,200

d.$239,600