Figure 2-2.

Lonborg Co. had the following beginning and ending inventory balances for the year ended December 31, 20x8:

January 1, 20x8

December 31, 20x8

Materials

$10,000

$8,000

Work in Process

$18,000

$17,000

Finished Goods

$21,000

$16,500

In addition, direct labor costs of $30,000 were incurred, overhead equaled $42,000, materials purchased were $27,000 and selling and administrative costs were $22,000. Lonborg Co. sold 25,000 units of product during the year at a sales price of $5.00 per unit.

5.Refer to Figure 2-2. What was the amount of Cost of Goods Manufactured for the year?

a.

$101,000

b.

$124,000

c.

$100,000

d.

$102,000

6.Refer to Figure 2-2. What was the amount of Cost of Goods Sold for the year?

a.

$102,000

b.

$97,500

c.

$106,500

d.

$128,500

7.Refer to Figure 2-2. What were the total manufacturing costs for the year?

a.

$101,000

b.

$102,000

c.

$123,000

d.

$106,500

8.Refer to Figure 2-2. What was Lonborg's operating income for the year?

a.

$18,500

b.

$125,000

c.

$<3,500>

d.

$5,500

9.During the month of June, Telecom Inc. had cost of goods manufactured of $112,000, direct materials cost of $52,000, direct labor cost of $37,000 and overhead cost of $26,000. The Work in Process balance at June 30 equaled $10,000. What was the Work in Process balance on June 1?

a.

$7,000

b.

$13,000

c.

$10,000

d.

$115,000