Applying Power BI Analytics 03-01 (Static) Schedule of Cost of Goods Manufactured and Cost of Goods Sold [LO3-3]

[The following information applies to the questions displayed below.]

Cena Company (CC) manufactures sporting equipment and it provided the following information for its most recent year of operations (all raw materials are used in production as direct materials):

Purchase of raw materials $ 45,000 Direct labor $ 53,000 Manufacturing overhead applied to work in process $ 68,000 Actual manufacturing overhead cost $ 68,000

Inventory balances at the beginning and the end of the year were as follows: Beginning Ending Raw materials $ 10,000 $ 22,500 Work in process $ 35,000 $ 69,000 Finished goods $ 0 $ 39,500

The company has asked you to explain the flow of costs within the Schedules of Cost of Goods Manufactured and Cost of Goods Sold to its senior management team. To aid your explanation, you have decided to create visualization that depicts the flow of these costs.

Note that for all questions below you may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 1a. The work in process additions of $153,500 include which of the following costs?

• Direct materials used in production + Direct labor + Manufacturing overhead applied to work in processunanswered
• Direct materials used in production + Direct laborunanswered
• Direct materials used in production + Manufacturing overhead applied to work in processunanswered
• Direct labor + Actual manufacturing overhead costunanswered

1b. Which of the following equations reflects the flow of costs within the three inventory accounts included in the schedules of cost of goods manufactured and cost of goods sold?

• Beginning balance Additions Ending balance = Transferred outunanswered
• Beginning balance + Additions Ending balance = Transferred outunanswered
• Beginning balance Additions + Ending balance = Transferred outunanswered
• Beginning balance + Additions + Ending balance = Transferred outunanswered

1c. Which of the following statements is true?

• The cost of goods manufactured ($119,500) transfers out to cost of goods sold.unanswered
• The cost of goods manufactured ($119,500) transfers out to raw materials inventory.unanswered
• The cost of goods manufactured ($119,500) transfers out to finished goods inventory.unanswered
• The cost of goods manufactured ($119,500) transfers out to work in process inventory.unanswered

1d. The total amount of product costs included in this visualization that would be recorded as an expense in the income statement would be:

• $80,000unanswered
• $32,500unanswered
• $119,500unanswered
• $199,500unanswered

1e. If the companys actual manufacturing cost had been $70,000 instead of $68,000, what effect would it have had on the cost of goods manufactured (COGM)?

• It would increase the beginning balance of work in process inventory by $2,000.unanswered
• It would decrease the cost of goods manufactured (COGM) by $2,000.unanswered
• It would increase the cost of goods manufactured (COGM) by $2,000.unanswered
• It would have no effect on the cost of goods manufactured (COGM).