Question

1. Marigold Corp.reported the following year-end information:

Beginning work in process inventory	$1080000
Beginning raw materials inventory	300000
Ending work in process inventory	900000
Ending raw materials inventory	480000
Raw materials purchased	1020000
Direct labor	820000
Manufacturing overhead	820000

1Marigold Corp.'s cost of goods manufactured for the year is

a.

$2480000.

b.

$2300000.

c.

$2840000.

d.

$2660000.

2. Crane Company reported the following year-end information: beginning work in process inventory, $70000; cost of goods manufactured, $650000; beginning finished goods inventory, $40000; ending work in process inventory, $60000; and ending finished goods inventory, $30000. How much is Crane’s cost of goods sold for the year?

a.

$660000

b.

$650000

c.

$640000

d.

$670000

3. Crane Company's accounting records reflect the following inventories:

	Dec. 31, 2017	Dec. 31, 2016
Raw materials inventory	$310000	$260000
Work in process inventory	300000	160000
Finished goods inventory	190000	150000

During 2017, $780000 of raw materials were purchased, direct labor costs amounted to $551100, and manufacturing overhead incurred was $704000.
If Crane Company's cost of goods manufactured for 2017 amounted to $1845100, its cost of goods sold for the year is

a.

$1805100.

b.

$1955100.

c.

$1705100.

d.

$1885100.

4. A manufacturing company reports cost of goods manufactured as a(n)

a.	component of the raw materials inventory on the balance sheet.

b.	administrative expense on the income statement.

c.	current asset on the balance sheet.

d.	component in the calculation of cost of goods sold on the income statement.

5. The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the

a.	total manufacturing overhead.

b.	total manufacturing costs.

c.	cost of goods manufactured.

d.	total cost of work in process.

6. The net income reported on the income statement for the current year was $214000. Depreciation recorded on plant assets was $35100. Accounts receivable and inventories increased by $1800 and $8200, respectively. Prepaid expenses and accounts payable decreased by $1600 and $12100 respectively. How much cash was provided by operating activities?

a.

$228600

b.

$249100

c.

$214000

d.

$19370

7.The following data are available for Oriole Corporation.

Sale of land	$224900
Sale of equipment	$129900
Issuance of common stock	140200
Purchase of equipment	69400
Payment of cash dividends	119700

Net cash provided by investing activities is:

a.

$259800.

b.

$285400.

c.

$304600.

d.

$425600.

8. In calculating net cash provided by operating activities using the indirect method, an increase in prepaid expenses during a period is

a.	added to net income.

b.	ignored because it does not affect expenses.

c.	ignored because it does not affect income.

d.	deducted from net income.

9. Waterway Company reported net income of $71500 for the year. During the year, accounts receivable increased by $6100, accounts payable decreased by $5400 and depreciation expense of $8500 was recorded. Net cash provided by operating activities for the year is

a.

$71500.

b.

$68500.

c.

$91500.

d.

$63700.

10. Lending money and collecting the loans are

a.	operating activities.

b.	investing activities.

c.	financing activities.

d,	Non-cash investing and financing activities.

Answer 1

1)	Beginning raw materials			300,000
	add purchases			1,020,000
	less ending raw materials			1,320,000
	direct materials used			480,000	840,000
	direct labor				820,000
	Manufacturing overhead				820,000
	total manufacturing cost				2,480,000
	add beginning WIP				1,080,000
	less endingWIP				-900,000
	cost of goods manufactured				2,660,000
	option d	2,660,000
2)	cost of goods sold
	beginning finished goods				40,000
	cost of goods maufactured				650,000
	less ending finished goods				-30000
	cost of goods sold				660,000
	option a	660,000
3)	cost of goods sold
	beginning finished goods				150,000
	cost of goods maufactured				1,845,100
	less ending finished goods				-190000
	cost of goods sold				1,805,100
	option a	1,805,100
4)	option d
	component in the calculation of cost of goods sold
	on the income statement
5)	option b
	total manufacturing cost
6)	net income				214,000
	depreciation				35,100
	accounts receivable increse				-1800
	inventory increased				-8200
	prepaid expense decreased				1600
	accounts payable decreased				-12100
	net cash provided by operating activities				228,600
	option a	228,600
7)	sale of land				224,900
	sale of equipment				129,900
	purchase of Equipment				-69400
	net cash provided by investing activities				285,400
	option b	285,400
8)	option d
	deducted from net income
9)	net income				71,500
	depreciation				8,500
	accounts receivable increse				-6100
	accounts payable decreased				-5400
	net cash provided by operating activities				68,500
	option b	68,500
10)	option b
	investing activities