8. Cost of Materials Used $40,000__COMU Direct Labor costs $55,000___ DL Factory
ID: 2384568 • Letter: 8
Question
8. Cost of Materials Used $40,000__COMU
Direct Labor costs $55,000___ DL
Factory Overhead $32,000___ FO
Work in Process, beg. $28,000
Work in Process, end. $18,000
What is Cost of Goods Manufactured? COGM=COMU+DL+FO+BWIP-EWIP
a. $173,000
b. $97,000
c. $117,000
d. $137,000 ($40,000+$55,000+$32,000+$28,000 - ($18,000) = $137,000
Answer: d
9. Cost of Materials Used $40,000
Direct Labor costs $55,000
Factory Overhead $32,000
Work in Process, beg. $28,000
Work in Process, end. $18,000
Finished Goods, beg. $28,000
Finished Goods, end. $18,000
What is Cost of Goods Sold? = COGM+FGB-FGE
a. $147,000
b. $137,000
c. $10,000
d. $128,000
10.
Beginning Raw Materials Inventory $75,000
Materials purchased $20,000
Ending Raw Materials Inventory $30,000
How much are Raw Materials Used?
a. $25,000
b. $45,000
c. $65,000
d. $20,000
11. The Zoe Corporation has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold.
Cost of materials placed in production $69,000
Direct labor 27,000
Factory overhead 34,000
Work in process, March 1 15,000
Work in process, March 31 19,500
Finished goods inventory, March 1 25,000
Finished goods inventory, March 31 23,000
answer:
a/ Cost of Goods Manufactured=$125,500
Cost of Goods Manufactured=COMU+DL+FO+BWIP-EWIP
COGM= $69,000+$27,000+$34,000+$15,000- $19,500= $125,500
Cost of Goods Manufactured=$125,500
b/ Cost of Goods Sold = $127,500
Cost of Goods Sold = COGM+FGB-FGE
$125,500+$25,000-$23,000= $127,500
12. Identify the following costs as a (a) product cost or (b) period cost for a cake factory.
1. _____ Frosting
2. _____ Baker’s wages
3. _____ Advertising fees
4. _____ Transportation out
answer:
1. Product cost _____ Frosting
2. Product cost _____ Baker’s wages
3. Period cost _____ Advertising fees
4. Period cost _____ Transportation out
Explanation / Answer
8.
Cost of goods manufactured = Direct materials used+ Direct labor + Factory overhead+ beginning goods in process- Ending goods in process.
Cost of goods manufactured = $40,000+$55,000+$32,000+$28,000-$18,000
= $137,000
Option “d” is correct.
9.
Cost of goods sold = Cost of goods manufactured +Finished Goods beginning inventory – Finished Goods ending inventory.
Cost of goods sold = $137,000+$28,000-$18,000
= $147,000
Option “a” is correct.
10.
Raw materials used = Beginning raw materials + Raw material purchased – Ending raw materials.
Raw materials used = $75,000+$20,000-$30,000
= $65,000
Option “c” is correct.
11.
a. Cost of goods manufactured:
Cost of goods manufactured = Direct materials used+ Direct labor + Factory overhead+ beginning goods in process- Ending goods in process.
Cost of goods manufactured = $69,000+$27,000+$34,000+$15,000-$19,500
= $125,500.
b. Cost of goods sold:
Cost of goods sold = Cost of goods manufactured +Finished Goods beginning inventory – Finished Goods ending inventory.
Cost of goods sold = $125,500+$25,000-$23,000.
= $127,500
12.
Yes, all of your answers are absolutely correct. Greatly appreciated.
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