Question

21/Asteroid Industries accumulated the following cost information for the year:

Direct materials	$	15,100
Indirect materials		3,100
Indirect labor		7,600
Factory depreciation		11,900
Direct labor		36,100

Using the above information, total factory overhead costs would be:

Multiple Choice

$73,800.

$22,600.

$11,900.

$15,000.

$51,200.

22/Using the information below, calculate gross profit for the period:

Beginning Raw Materials Inventory	$	23,000
Ending Raw Materials Inventory		28,000
Beginning Work in Process Inventory		51,000
Ending Work in Process Inventory		60,000
Beginning Finished Goods Inventory		76,000
Ending Finished Goods Inventory		63,000
Cost of Goods Sold for the period		520,000
Sales revenues for the period		1,214,000
Operating expenses for the period		212,000

Multiple Choice

$694,000.

$482,000.

$1,002,000.

$181,000.

$707,000.

23/Use the following data to determine the cost of goods manufactured:

Beginning finished goods inventory	$	11,000
Direct labor		30,800
Beginning work in process inventory		7,400
General and administrative expenses		13,700
Direct materials used		40,700
Ending work in process inventory		9,200
Indirect labor		6,500
Ending finished goods inventory		9,700
Indirect materials		13,700
Depreciation—factory equipment		7,700

Multiple Choice

$111,300.

$97,600.

$101,200.

$114,900.

$102,500.

24/Using the information below for Laurels Company; determine the cost of goods manufactured during the current year:

Direct materials used	$	6,100
Direct Labor		8,100
Total Factory overhead		6,200
Beginning work in process		4,100
Ending work in process		6,200

Multiple Choice

$16,900.

$20,400.

$14,200.

$22,500.

$18,300.

25/Use the following data to compute total factory overhead costs for the month:

Sales commissions	$	10,900
Direct labor		39,700
Indirect materials		15,300
Factory manager salaries		7,300
Factory supplies		9,100
Indirect labor		6,400
Depreciation—office equipment		5,100
Direct materials		40,600
Corporate office salaries		42,600
Depreciation—factory equipment		7,600

Multiple Choice

$142,000.

$126,000.

$45,700.

$85,400.

$58,600.

Answer 1

21. Factory overhead = Indirect material + Indirect labour + Factory depreciation = 3100 + 7600 + 11900 = $ 22,600

Option B: $ 22,600

22. Gross profit = Sales revenues for the period - Cost of Goods Sold for the period + Ending Raw Materials Inventory + Ending Work in Process Inventory + Ending Finished Goods Inventory - Beginning Raw Materials Inventory - Beginning Work in Process Inventory - Beginning Finished Goods Inventory = 1,214,000- 520,000+ 28,000+ 60,000+ 63,000- 23,000- 51,000- 76,000 = $695,000

Though there is no such option there as $695,000 but it will be the answer as per the calculation.

23. Cost of Goods Manufactured = Beginning work in process inventory+ Direct materials used+ Direct labor+ Indirect materials+ Indirect labor+ Depreciation—factory equipment - Ending work in process inventory = 7400+ 40,700+ 30800+ 13700+ 7700- 9200 = $97,600

Cost of goods manufactired for the year = $ 97,600

24. Cost of Goods Manufactured = Beginning work in process+ Direct materials used+ Direct Labor+ Total Factory overhead- Ending work in process = 4100+ 6100+ 8100+ 6200- 6200 = $ 18,300

Cost of goods manufactired for the year = $ 18,300

25. Total Factory Overhead cost = Indirect materials+ Factory manager salaries+ Factory supplies+ Indirect labor+ Depreciation—factory equipment = 15300+ 7300+ 9100+6400+ 7600 = $ 45,700

Total factory overhead costs for the month = $ 45,700