Chapter 1 Managerial Accounting and the Business Environment
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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Solution: Chapter 1 Managerial Accounting and the Business Environment