Question 1

Assume the following information pertaining to Cub Company:

Prime costs	$	195,500
Conversion costs		222,000
Direct materials used		85,350
Beginning work in process		98,450
Ending work in process		81,200

Total manufacturing cost is calculated to be:

Multiple Choice

• $307,350.

• $26,500.

• $110,150.

• $332,150.

• $111,850.

The following information was taken from the accounting records of Elliott Manufacturing Corp. Unfortunately, some of the data were destroyed by a computer malfunction.

Sales Revenue	$	62,500
Finished Goods Inventory, Beginning		10,500
Finished Goods Inventory, Ending		7,200
Cost of Goods Sold		?
Gross Margin		28,900
Direct Materials Used		10,900
Selling and Administrative Expense		?
Operating Income		15,200
Work-in-Process Inventory, Beginning		?
Work-in-Process Inventory, Ending		5,900
Direct Labor Used		9,450
Factory Overhead		12,600
Total Manufacturing Cost		?
Cost of Goods Manufactured		?

Cost of goods manufactured is calculated to be:

Multiple Choice

• $32,300.

• $30,300.

• $33,600.

• $38,300.

• $27,300.