The following beginning and ending inventory balances apply to XYZ's Year 1 accounting period:

	Beginning	Ending
Raw Materials Inventory	$24,000	$22,000
Work in Process Inventory	$32,000	$33,000
Finished Goods Inventory	$20,000	$17,000

During 2018, the company purchased $234,000 of direct raw materials. It incurred $180,000 of direct labor costs for the year and allocated $260,000 of manufacturing overhead costs to work in process. There was no overapplied or underapplied overhead. Revenue from goods sold during the year was $800,000.

The amount of cost of goods manufactured was

a.	$675,000.
b.	$673,000.
c.	$679,000.
d.	$656,000

On Monday Mayfair Flowers purchased roses costing $20,000. Tuesday Mayfair uses $5,000 of the flowers to begin preparing for Friday evening's Lovers Dance. On Wednesday, they purchased office supplies on account for $3,000 and paid labor for projects of $1,500. Supplies were used on Thursday.

What are the ending account balances after Thursday's transactions?

a.	Raw materials $20,000;Work-In-Process $0; Finished Goods $0; Cost of Goods Sold $4,500.
b.	Raw Materials $25,000;Work-In-Process $4,500; Finished Goods $0; Cost of Goods Sold $4,500.
c.	Raw Materials $15,000;Work-In-Process $6,500; Finished Goods $0; Cost of Goods Sold $0.
d.	Raw Materials $15,000;Work-In-Process $5,000; Finished Goods $0; Cost of Goods Sold $4,500.

During Year 1 Smithtown Manufacturing expected to produce 100,000 units with $300,000 of overhead, $500,000 of material, and $200,000 in labor. Actual production was 110,000 units with an overhead cost of $280,000, $550,000 in materials used; and $220,000 in labor. All of the goods were completed and transferred to Finished Goods. What amount was transferred to Finished Goods? (HINT - calculate the POHR for overhead and apply overhead to the costs of transfer)

a.	$1,000,000
b.	$1,050,000
c.	$1,070,000
d.	$1,100,000

Information related to Broncos is listed below:

	Units	Overhead
Budget	80,000	$350,000
Work in Process Inventory	77,000	$350,000
Actual	75,000	$360,000

What is the amount of underapplied overhead? (hint - calculate the POHR to calculate overhead applied)

a.	$10,000
b.	$21,875
c.	$31,000
d.	$31,875

Indirect costs are trouble for a manufacturing firm because

a.	they cannot become assets until the finished goods are sold.
b.	they are directly related to direct costs.
c.	they cannot be estimated.
d.	many indirect costs will not be known until the end of the year.

When a manufacturing firm sells its finished product

a.	it reduces an asset and reduces the associated liability.
b.	they decrease an asset and increase an expense.
c.	it reduces equity and increases an asset.
d.	Sales and Administrative Costs become an expense.