The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year:
Raw Materials $57,000 $60,000
Finished Goods 68,000 60,000
The raw materials used in manufacturing during the year totaled $118,000. Raw materials purchased during the year amount to:
answer
$121,000
Beg RM + Purch - End RM = RM used
Purch = RM used - Beg RM + End RM
Purch = $118,000 - $57,000 + $60,000
Purch = $121,000
question
Goods a company acquires to use in making products are called:
answer
Raw materials inventory.
question
Factory overhead costs normally include all of the following except:
answer
Selling costs.
question
Which of the following items appears only in a manufacturing company's financial statements?
answer
Cost of goods manufactured.
question
The following are all examples of product costs:
answer
Direct material, direct labor and indirect labor.
question
Period costs for a manufacturing company would flow directly to:
answer
The current income statement.
question
The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense - factory building, $133,000; direct labor, $250,000; direct material used, $300,000; factory utilities, $105,000; and sales salaries expense, $150,000. Determine the dollar amount of prime costs.
answer
$550,000
Direct material $300,000 + Direct labor $250,000 = $550,000
question
A direct cost is a cost that is:
answer
Traceable to a cost object.
question
The three major cost components of a manufactured product are:
answer
Direct materials, direct labor, and factory overhead.
question
Juliet Corporation has accumulated the following accounting data for the year:
Finished Goods Inventory, January 1 $3,200
Finished Goods Inventory, December 31 $4,000
Total Cost of Goods Sold $4,200
The cost of goods manufactured for the year is:
answer
$5,000
Beg FG + COGM - END FG = COGS
COGM = COGS - Beg FG + End FG
COGM = $4,200 - $3,200 + $4,000
COGM = $5,000
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