Chapter 1 Managerial Accounting and the Business Environment

Question # 00050758 Posted By: solutionshere Updated on: 02/25/2015 08:55 AM Due on: 02/25/2015
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Use the following to answer questions 96-99:

The following data (in thousands of dollars) have been taken from the accounting records of Karsten Corporation for the just completed year.

Sales ......................................................................

$990

Raw materials inventory, beginning .....................

$70

Raw materials inventory, ending ...........................

$30

Purchases of raw materials ....................................

$100

Direct labor ............................................................

$200

Manufacturing overhead .......................................

$160

Administrative expenses .......................................

$180

Selling expenses ....................................................

$150

Work in process inventory, beginning ..................

$40

Work in process inventory, ending .......................

$70

Finished goods inventory, beginning ....................

$150

Finished goods inventory, ending .........................

$130

Use these data to answer the following series of questions.


Garrison, Managerial Accounting, 12th Edition 41


Chapter 2 Cost Terms, Concepts, and Classifications

96. The cost of the raw materials used in production during the year (in thousands of dollars) was:

A) $130

B) $170

C) $140

D) $60

97. The cost of goods manufactured (finished) for the year (in thousands of dollars) was:

A) $530

B) $540

C) $470

D) $570

98. The cost of goods sold for the year (in thousands of dollars) was:

A) $490

B) $450

C) $620

D) $600

99. The net operating income for the year (in thousands of dollars) was:

A) $170

B) $140

C) $500

D) $200


42 Garrison, Managerial Accounting, 12th Edition


Chapter 2 Cost Terms, Concepts, and Classifications

Use the following to answer questions 100-103:

The following data (in thousands of dollars) have been taken from the accounting records of Karstone Corporation for the just completed year.

Sales .........................................................................

$880

Raw materials inventory, beginning ........................

$20

Raw materials inventory, ending ..............................

$30

Purchases of raw materials .......................................

$150

Direct labor ...............................................................

$180

Manufacturing overhead ..........................................

$230

Administrative expenses ..........................................

$100

Selling expenses .......................................................

$130

Work in process inventory, beginning .....................

$80

Work in process inventory, ending ..........................

$30

Finished goods inventory, beginning .......................

$120

Finished goods inventory, ending ............................

$100

Use these data to answer the following series of questions.

100. The cost of the raw materials used in production during the year (in thousands of dollars) was:

A) $180

B) $140

C) $160

D) $170

101. The cost of goods manufactured (finished) for the year (in thousands of dollars) was:

A) $580

B) $600

C) $500

D) $630

102. The cost of goods sold for the year (in thousands of dollars) was:

A) $620

B) $580

C) $720

D) $700


Garrison, Managerial Accounting, 12th Edition 43


Chapter 2 Cost Terms, Concepts, and Classifications

103. The net operating income for the year (in thousands of dollars) was:

A) $260

B) $30

C) $90

D) ($30)

Use the following to answer questions 104-105:

The manufacturing operations of QC Company had the following inventory balances for the month of March:

Inventories

March 1

March 31

Raw materials ....................

$10,000

$12,000

Work in process .................

$6,000

$7,000

Finished goods ..................

$30,000

$22,000

104. If the company purchased $18,000 of raw materials during March, what was the cost of raw materials used in production?

A) $16,000

B) $20,000

C) $41,000

D) $19,000

105. If the company transferred $38,000 of completed goods from work in process to finished goods during March, what was the amount of the cost of goods sold?

A) $38,000

B) $43,000

C) $30,000

D) $46,000

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Tutorials for this Question
  1. Tutorial # 00047922 Posted By: solutionshere Posted on: 02/25/2015 08:56 AM
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    A) $170 B) $140 C) $500 D) $200 Answer: A Level: Medium LO: 2,3,4 42 Garrison, ...
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