Question

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

Sales	$990
Raw materials inventory, beginning	$40
Raw materials inventory, ending	$70
Purchases of raw materials	$120
Direct labour	$200
Manufacturing overhead	$230
Administrative expenses	$150
Selling expenses	$140
Work-in-process inventory, beginning	$70
Work-in-process inventory, ending	$50
Finished goods inventory, beginning	$120
Finished goods inventory, ending	$160

1.) What was the cost of goods manufactured (finished) for the year (in thousands of dollars)?

Multiple Choice

• $540.

• $500.

• $570.

• $590

2.) What was the cost of goods sold (in thousands of dollars) for the year?

Multiple Choice

• $580.

• $700.

• $660.

• $500.

3.) What was the net income (in thousands of dollars) for the year?

Multiple Choice

• $490.

• $250.

• $150.

• $200.

4.) What was the cost (in thousands of dollars) of the raw materials used in production during the year?

Multiple Choice

• $190.

• $150.

• $160.

• $90.

Answer 1

Question 1

Correct answer---------------$540

Question 2

Correct answer---------------$500

Question 3

Correct answer---------------$200

Question 4

Correct answer---------------$90

Working

Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	$ 40
Raw material Purchased	$ 120
Raw material available for use	$ 160
Less: Raw material Inventory Ending	$ 70
Direct Material Used		$ 90
Direct labor		$ 200
Total Manufacturing overhead		$ 230
Total manufacturing Cost During the month		$ 520
Add: Work in process Beginning		$ 70
Total Work in Process		$ 590
Less: Work in progress Ending		$ 50
Cost of Goods Manufactured		$ 540

.

Schedule of cost of goods sold
Beginning Finished Goods Inventory		$ 120
Add: Cost of goods manufactured		$ 540
Goods Available for sale		$ 660
Less :Ending Finished goods Inventory		$ 160
Cost of Goods Sold		$ 500

.

Income statement
Sales revenue		$ 990
Less: Cost of goods sold		$ 500
Gross profit		$ 490
Selling and administrative expenses
Selling expenses	$ 140
Administrative expenses'	$ 150	$ 290
Net income		$ 200