The manufacturing cost accounts of Varsity Manufacturing Co. provide the following information for the year ended December 31, 2011:
Direct materials used $500,000
Direct materials purchased $520,000
Direct labor cost assigned to production $130,000
Wages paid to direct workers $120,000
Manufacturing overhead costs applied to production $190,000
Cost of finished goods manufactured $850,000
Inventories at the beginning and end of the year were as follows:
Dec. 31 Jan. 1
Materials............................................................... $65,000 $?
Work in Process..................................................... $15,000 $10,000
Finished Goods..................................................... $35,000 $65,000
Answer the following questions. If you select answer d, indicate the correct amount.
1 Refer to the above data. The total amount of inventory that should appear in the company's balance sheet at December 31, 2011 is:
a $115,000. c $85,000.
b $860,000. d Some other amount. $____________
2 Refer to the above data. The total manufacturing costs charged to the Work in Process Inventory account during 2011 amounted to:
a $850,000. c $810,000.
b $820,000. d Some other amount. $____________
3 Refer to the above data. The total manufacturing costs deducted from revenue in 2011: amounted to:
a $890,000. c $845,000.
b $880,000. d Some other amount. $____________
4 Refer to the above data. The balance in the Materials Inventory account at the beginning of 2011: was:
a $65,000. c $45,000.
b $85,000. d Some other amount. $____________