QUESTION 6

1. Using the following information calculate the cost of goods sold:

   Utilities for the store 9,500

   Sales commissions 10,000

   Sales revenue 164,000

   Purchases of merchandise 85,000

   January 1 inventory 27,000

   Rent of store 13,500

   December 31 inventory 23,000

   	a.	$112,000
   	b.	$85,000
   	c.	$89,000
   	d.	$108,000

3 points

QUESTION 7

1. Based on the information below what is the cost of direct materials used:

   Beginning of year End of year

   Raw materials inventory 200 180

   Work in Process inventory 320 410

   Finished goods inventory 250 200

   Sales revenue $4,000

   Purchases of direct materials $400

   Direct labor $450

   Manufacturing overhead $620

   Operating expenses $650

   	a.	$600
   	b.	$400
   	c.	$380
   	d.	$420

3 points

QUESTION 8

1. Based on the information below what is the cost of good manufactured and completed:

   Beginning of year End of year

   Raw materials inventory 200 180

   Work in Process inventory 320 410

   Finished goods inventory 250 200

   Sales revenue $4,000

   Purchases of direct materials $400

   Direct labor $450

   Manufacturing overhead $620

   Operating expenses $650

   	a.	$1,580
   	b.	$1,490
   	c.	$1,400
   	d.	$1,380

4 points

QUESTION 9

1. OVERallocated manufacturing overhead results when:

   	a.	Production is less than last year.
   	b.	Actual overhead is less than expected.
   	c.	Actual overhead is less than allocated overhead.
   	d.	Estimated overhead is less than actual overhead.

1 points

QUESTION 10

1. Before the year began, ABC manufacturing estimated that manufacturing overhead for the year would be $200,000 and that 25,000 direct labor hours would be worked.

   Actual results for the year included the following:

   Actual manufacturing costs $182,000

   Actual direct labor hours 20,000

   If the company allocated manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been _________

   	a.	$18,000 Underallocated
   	b.	$22,000 Underallocated
   	c.	$18,000 Overallocated
   	d.	$22,000 Overallocated