Question

In: Accounting

Answer questions 1-5 using the information below: Advertising expenses $ 16,000 Depreciation expense - admin. office...

Answer questions 1-5 using the information below: Advertising expenses $ 16,000 Depreciation expense - admin. office 107,000 Depreciation expense - plant 197,000 Direct materials inventory, beginning 33,000 Direct materials inventory, ending 28,000 Direct materials purchases 190,000 Direct labor 345,000 Finished goods inventory, beginning 66,000 Finished goods inventory, ending 43,000 Heat and light for plant 23,000 Indirect labor 128,000 Insurance on plant 44,000 Repairs on plant building 34,000 Sales representatives' salaries 258,000 Sales revenue 1,675,000 Supervisor's salary - plant 106,000 Work-in-process inventory, beginning 14,000 Work-in-process inventory, ending 11,000

What is the cost of direct materials used? Group of answer choices

$185,000

$251,000

$195,000

$223,000

How much is the total amount of manufacturing overhead cost? Group of answer choices

$532,000

$447,000

$605,000

$877,000

What is the cost of goods manufactured? Group of answer choices

$1,075,000

$1,078,000

$1,072,000

$1,086,000

What is the cost of goods sold? Group of answer choices

$1,141,000

$1,098,000

$1,109,000

$1,479,000

What is total amount of period costs? Group of answer choices

$381,000

$274,000

$165,000

$216,000

Solutions

Expert Solution

Answer:
1)
Particulars Amount (in $)
Beginning, Direct materials inventory $ 33,000
Add: purchases $ 190,000
Less: Ending Direct materials inventory ( $28,000)
Direct materials used $ 195,000
Option ( C ) is Correct
2)
Particulars Amount (in $)
Plant Expenses:
Depreciation expense $ 197,000
Add: Heat and light for plant $ 23,000
Add: Indirect labor $ 128,000
Add: Insurance $ 44,000
Add: Repairs on plant building $ 34,000
Add: Supervisor's salary $ 106,000
Total amount of manufacturing overhead cost $ 532,000
Option ( a ) is Correct
3)
Particulars Amount (in $)
Direct materials used $ 195,000
Add: Direct labor $ 345,000
Add: Overhead cost $ 532,000
Manufacturing Cost $ 1,072,000
Beginning, Work-in-process inventory $ 14,000
Add: Manufacturing Cost $ 1,072,000
Less: Ending Work-in-process inventory ($11,000)
Cost of Goods manufactured $ 1,075,000
Option ( a ) is Correct
4)
Particulars Amount (in $)
Beginning, Finished goods inventory $ 66,000
Add: Manufacturing Cost $ 1,075,000
Less: Ending Finished goods inventory ($ 43,000)
Cost of Goods Sold $ 1,098,000
Option ( b ) is Correct
5)
Particulars Amount (in $)
Depreciation expense-Admin. $ 107,000
Add: Sales representatives' salaries $ 258,000
Add: Advertising expenses $ 16,000
Total amount of period costs $ 381,000
Option ( a ) is Correct

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