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Accounting Homework #2 1. Assume a manufacturer had beginning finished good inventory of $22,000. The cost of goods manufactured for the period was $111,500. Ending finished goods inventory was $37,000. What was the cost of goods sold for the period? a) $170,500 b) 133,500 c) 96,500 d) 52,500 2. Wondrous Baking Co. had the following costs during the period: Shipping cost Direct Material Direct Labor Indirect Materials Indirect Labor Bakery Heating & Lighting Insurance on Bakery Advertising $3,200 $14,300 $18,900 $4,400 $2,100 $5,600 $800 $8,000 Calculate Wondrous Baking Co.'s manufacturing overhead. a) $33,200 b) $12,900 c) $24,100 d) $11,200 3. Assume Yellow Manufacturing Inc. has the following original data for the period: Selling price per unit $55.00 Variable cost per unit $18.00 Total fixed costs $55,500 Income from operations is currently $18,500. If management decides to increase the variable cost per unit to $20 and believes sales will increase to 2,300 units as a result of this, what is the impact on net income a) $6,500 decrease b) $52,500 increase c) $52,500 decrease d) $6,500 increase 4. In the reading, Service Company Insight - San Diego Zoo, funds were able to be allocated towards preventing an infectious bird disease using which means of financial planning? a) 12-month rolling forecast b) Leeching shares of common stock c) Creating allowance for disaster recovery d) Monthly budget reforecast