1. Consider the following costs incurred in a recent period: What was the total
ID: 2494127 • Letter: 1
Question
1. Consider the following costs incurred in a recent period:
What was the total amount of the period costs listed above for the period?
$37,000
$46,000
$71,000
$78,000
2. The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000. If the ending inventory of finished goods was $30,000, the beginning inventory of finished goods must have been:
$20,000
$50,000
$110,000
$150,000
3.
The following inventory balances relate to Lequin Manufacturing Corporation at the beginning and end of the year:
Lequin's total manufacturing cost was $543,000. What was Lequin's cost of goods sold?
$517,000
$545,000
$569,000
$567,000
4. Haan Inc. is a merchandising company. Last month the company's cost of goods sold was $66,000. The company's beginning merchandise inventory was $14,000 and its ending merchandise inventory was $16,000. What was the total amount of the company's merchandise purchases for the month?
$64,000
$66,000
$68,000
$96,000
5. Prime cost consists of direct materials combined with:
direct labor
manufacturing overhead
indirect materials
cost of goods manufactured
6. The following costs were incurred in August:
Conversion costs during the month totaled:
$127,000
$52,000
$51,000
$75,000
Direct Materials $33,000 Depreciation on Factory Equipment $12,000 Factory Janitors Salary $23,000 Direct Labor $28,000 Utilities For Factory $9,000 Selling Expenses $16,000 Production supervisor’s salary $34,000 Administrative expense $21,000Explanation / Answer
1) PERIOD COSTS = SELLING EXPENSES + ADMINISTRATIVE EXPENSES
= 16000 + 21000
= $37000
2) COST OF GOODS SOLD = SALES - GROSS MARGIN
= 360000 - 220000
= $140000
COST OF GOODS SOLD = COST OF GOODS MANUFACTURED + BEGINNING INVENTORY - ENDING INVENTORY
140000 = 120000 + BEGINNING INVENTORY - 30000
BEGINNING INVENTORY = $50000
3) COST OF GOODS SOLD = COST OF GOODS MANUFACTURED + BEGINNING INVENTORY - ENDING INVENTORY
= 543000 + 25000 - 23000
COST OF GOODS SOLD = $545000
4) COST OF GOODS SOLD = BEGINNING INVENTORY + PURCHASES - CLOSING INVENTORY
66000 = 14000 + PURCHASES - 16000
PURCHASES = $68000
5) PRIME COSTS CONSISTS OF DIRECT MATERIAL COMBINED WITH DIRECT LABOUR.
6) CONVERSION COSTS = DIRECT LABOUR + MANUFACTURING OVERHEAD
= 14000 + 38000
CONVERSION COSTS = $52000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.