5 Use the following information to prepare the schedule of cost of goods manufactured for Graffstone Company for the month ended June 30 Work in Process inventory, May 31 $12,600 Work in Process inventory, June 30 16,500 Direct materials used during June 21,000 Direct labor used during June 31,000 Factory overhead Indirect material 6,400 Indirect labor 9,200 Factory rent 12,000 Factory depreciation 15,000 Factory utilities 18,400 6 Information for Stanton, Inc , as of December 31 follows Prepare a schedule of cost of goods manufactured for the year ended December 31 Administrative salaries $35,000 Depreciation of factory equipment 25,000 Depreciation of delivery vehicles 6,000 Direct labor 68,000 Factory supplies used 9,000 Finished goods inventory, January 1 57,000 Finished goods inventory, December 31 Factory insurance 15,500 Interest expense 12,000 Factory utilities 14,000 Factory maintenance 7,500 Raw materials inventory, January 1 5,000 Raw materials inventory, December 31 4,000 Raw material purchases 125,000 Rent on factory building 25,000 Repairs of factory equipment 11,500 Sales commissions 37,500 Work in Process inventory, January 1 3,500 Work in Process inventory, December 31 2,700 7 Last year, Wesson Company sold 10,000 units of its only product If sales increase by 12 in the current year, how will unit variable cost and unit fixed cost be affected Unit Variable Cost Unit Fixed Cost A) Remains constant Remains constant B) Increases Decreases C) Decreases Remains constant D) Remains constant Decreases E) Remains constant Increases A Choice A B Choice B C Choice C D Choice D E Choice E 8 Last year, Gordon Company sold 20,000 units of its only product If sales increase by 20 in the current year, how will unit variable cost and total fixed cost be affected Unit Variable Cost Total Fixed Cost A) Remains constant Remains constant B) Increases Decreases C) Decreases Remains constant D) Remains constant Decreases E) Remains constant Increases A Choice A B Choice B C Choice C D Choice D E Choice E 9 A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800 The cost of goods sold for this company is A $21,200 B $29,300 C $32,500 D $47,100 E $27,600

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5. Use the following information to prepare the schedule of cost of goods manufactured for Graffstone Company for the month ended June 30. Work in

5. Use the following information to prepare the schedule of cost of goods manufactured for Graffstone Company for the month ended June 30.

Work in Process inventory, May 31	$12,600
Work in Process inventory, June 30	16,500
Direct materials used during June	21,000
Direct labor used during June	31,000
Factory overhead:
Indirect material	6,400
Indirect labor	9,200
Factory rent	12,000
Factory depreciation	15,000
Factory utilities	18,400

6. Information for Stanton, Inc., as of December 31 follows. Prepare a schedule of cost of goods manufactured for the year ended December 31.

Administrative salaries	$35,000
Depreciation of factory equipment	25,000
Depreciation of delivery vehicles	6,000
Direct labor	68,000
Factory supplies used	9,000
Finished goods inventory, January 1	57,000
Finished goods inventory, December 31	?
Factory insurance	15,500
Interest expense	12,000
Factory utilities	14,000
Factory maintenance	7,500
Raw materials inventory, January 1	5,000
Raw materials inventory, December 31	4,000
Raw material purchases	125,000
Rent on factory building	25,000
Repairs of factory equipment	11,500
Sales commissions	37,500
Work in Process inventory, January 1	3,500
Work in Process inventory, December 31	2,700

7. Last year, Wesson Company sold 10,000 units of its only product. If sales increase by 12% in the current year, how will unit variable cost and unit fixed cost be affected?

	Unit Variable Cost	Unit Fixed Cost
A)	Remains constant	Remains constant
B)	Increases	Decreases
C)	Decreases	Remains constant
D)	Remains constant	Decreases
E)	Remains constant	Increases

A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E

8. Last year, Gordon Company sold 20,000 units of its only product. If sales increase by 20% in the current year, how will unit variable cost and total fixed cost be affected?

	Unit Variable Cost	Total Fixed Cost
A)	Remains constant	Remains constant
B)	Increases	Decreases
C)	Decreases	Remains constant
D)	Remains constant	Decreases
E)	Remains constant	Increases

A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E

9. A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold for this company is: A. $21,200. B. $29,300. C. $32,500. D. $47,100. E. $27,600