Question 1: Madtack Company's beginning and ending inventories for the month of November were as follows:
|
|
November 1
|
November 30
|
|
Direct Materials
|
$68,500
|
$61,400
|
|
Work in Process
|
$147,000
|
$164,000
|
|
Finished Goods
|
$86,600
|
$77,100
|
Production data for month follow:
|
Direct labor cost incurred
|
$204,000
|
|
Actual manufacturing overhead cost incurred
|
$131,000
|
|
Direct materials purchases
|
$165,700
|
Madtack applies manufacturing overhead cost to jobs at the rate of 62% of direct labor cost incurred. The company does not close underapplied or overapplied manufacturing overhead to Cost of Goods Sold until the end of the year.
Madtack Company's Cost of Goods Sold for November was:
a.$486,280
b.$502,780
c.$495,780
d $493,780
Question 2: The Lee Company uses a job-order costing system. The following data were recorded for June:
Added During June
|
Job Number
|
June 1 Work in Process Inventory
|
Direct Materials
|
Direct Labor
|
|
235
|
$2,690
|
$790
|
$480
|
|
236
|
$1,590
|
$940
|
$1,000
|
|
237
|
$1,080
|
$1,400
|
$1,860
|
|
238
|
$850
|
$1,550
|
$2,350
|
Overhead is charged to production at 60% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers.
Lee Company's cost of goods sold for June was:
a. $10,554
b. $15,904
c. $10,114
d. $15,294
Question 3: Smalling Inc. has provided the following data for the month of November:
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Inventories:
|
Beginning
|
Ending
|
|
Work in process
|
$19,600
|
$9,800
|
|
Finished goods
|
|
$57,800
|
Additional information:
|
Direct material
|
$76,800
|
|
Direct labor cost
|
$97,000
|
|
Manufacturing overhead cost incurred
|
$47,300
|
|
Manufacturing overhead cost applied to Work in process
|
$45,500
|
The adjusted cost of goods sold that appears on the income statement for November is:
a. $219,300
b. $229,100
c. $221,100
d. $244,100