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Chapter 15
Uploaded: A week ago
Contributor: bio_man
Category: Accounting
Type: Solutions
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Filename:   Chapter 15.docx (22.72 kB)
Page Count: 2
Credit Cost: 1
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Transcript
Chapter 15 1) Which of the following costs would a computer manufacturer include in manufacturing overhead? Depreciation on testing equipment. included in manufacturing overhead because it is indirectly associated with the finished product. 2) Given the following data for Harder Company, compute cost of goods manufactured: Direct materials used $120,000 Beginning work in process $20,000 Direct labor 200,000 Ending work in process 10,000 Manufacturing overhead 180,000 Beginning finished goods 25,000 Operating expenses 175,000 Ending finished goods 15,000 $510,000 3) Barton Company has beginning work in process inventory of $144,000 and total manufacturing costs of $686,000. If cost of goods manufactured is $660,000, what is the cost of the ending work in process inventory? $170,000 4) Molina Company has beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $680,000, what is the total cost of goods manufactured? $665,000 5) Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively. If direct materials used were $310,000, what was the cost of raw materials purchased?  $326,000 6) Cost of goods manufactured is calculated as follows: Beginning WIP + direct materials used + direct labor + manufacturing overhead – ending WIP. 7) Barry’s BarBQue incurred the following costs: $1,400 for ribs, 45 hours of labor to cook the ribs at $10 per hour, $50 for seasoning and sauce, $300 for signs to advertise the ribs, $150 to clean the grill after cooking the ribs, and $100 of administrative costs. How much are total product costs? $2,050 Only manufacturing costs are included as product costs. Two costs listed are period costs which are not part of the cost of getting the product ready to sell. 8) Direct materials are a Product cost. NOT Manufacturing overhead and period cost. 9) Wood Company has beginning work in process inventory of $138,000 and total manufacturing costs of $477,000. If cost of goods manufactured is $480,000, what is the cost of the ending work in process inventory?  $135,000. 10) Indirect labor is a manufacturing, not a nonmanufacturing, cost because it is part of the effort required to produce a product. 11) Which of the following is not an element of manufacturing overhead? Sales manager’s salary. Factory repairman’s wages. Product inspector’s salary. Plant manager’s salary. 12) Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured? $60,000 13) Penner Company reported total manufacturing costs of $450,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000. How much is direct labor cost?  $276,000 14) Which of the following costs are classified as a period cost? Wages paid to a cost accountant department supervisor would be included in administrative expenses and classified as a period cost. 15) Edmiston Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $750,000; beginning finished goods inventory, $50,000; ending work in process inventory, $70,000; and ending finished goods inventory, $40,000. How much is Edmiston’s cost of goods sold for the year? $760,000 16) Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of goods manufactured: Direct materials used $270,000   Beginning work in process $40,000 Direct labor 200,000   Ending work in process 20,000 Manufacturing overhead 250,000   Beginning finished goods 50,000 Operating expenses 350,000   Ending finished goods 30,000 A B $720,000 $740,000

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