Question 1

Figure 2-1.

Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances.

Refer to Figure 2-1: The per-unit conversion cost was:

Answer

a		$218.75
b		$156.25
c		$162.50
d		$100.00

Question 2

	Figure 2-1. Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances. Refer to Figure 2-1: The total product costs for last month were: Answer

a		$1,750,000
b		$2,110,000
c		$1,300,000
d		$1,250,000

Question 3

Figure 2-1. Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances.

Refer to Figure 2-1: The total per unit prime cost was:

Answer

a		$263.75
b		$62.50
c		$162.50
d		$156.25

Question 4

Figure 2-1. Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances.

Refer to Figure 2-1: What was the amount of cost of goods manufactured last month?

Answer

a		$1,750,000
b		$1,250,000
c		$1,300,000
d		$2,110,000

Question 5

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?

Answer

a		$7,000
b		$13,000
c		$10,000
d		$115,000

Question 6

Lakeland, Inc. manufactured 5,000 units during the month of March. They incurred direct materials cost of $100,000 and overhead cost of $40,000.

If their per-unit prime cost was $26.00 per unit how much direct labor cost did they incur during March?

Answer

a		$20,000
b		$35,000
c		$90,000
d		$30,000

Question 7

Figure 2-3. Bartlow, Inc. had the following Income Statement for the month of May.

Sales Revenue	$428,000
Cost of Goods Sold	205,440
Gross Margin	222,560
Less:
Selling Expenses	81,320
Administrative Expenses	72,760
Operating Income	$ 68,480

Refer to Figure 2-3: What was the sales revenue percent?

Answer

a		100%
b		48%
c		52%
d		16%

Question 8

Figure 2-3. Bartlow, Inc. had the following Income Statement for the month of May.

Sales Revenue	$428,000
Cost of Goods Sold	205,440
Gross Margin	222,560
Less:
Selling Expenses	81,320
Administrative Expenses	72,760
Operating Income	$ 68,480

Refer to Figure 2-3: What was the cost of goods sold percent?

Answer

a		100%
b		19%
c		52%
d		48%

Question 9

Figure 2-4. Junko Company makes typewriters. During the year Junko manufactured 97,000 typewriters. Finished Goods Inventory had the following units on hand:

January 1	1,260
December 31	1,040

Refer to Figure 2-4: How many typewriters did Junko sell during the year?

Answer

a		96,780
c		97,220
c		97,000
d		98,260

Question 10

Figure 2-5. In July, Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000. Overhead totaled $32,000 for the month. Information on inventories was as follows:

	July 1	July 31
Materials	$6,200	$7,100
Work in Process	$ 700	$1,200
Finished Goods	$3,300	$2,700

Refer to Figure 2-5: What was the cost of direct materials used in July?

Answer

a		$21,000
b		$20,100
c		$21,900
d		$20,500