Cost of Goods Manufactured

End of the year we underapplied overhead. We need to make an adjustment to correct. What is the entry that we need to make?

• Increase Cost of Goods Sold

• Decrease Cost of Goods Sold

• Increase Cost of Goods Manufactured

• Decrease Sales

If a cost doubles when production doubles which of the following is True?

• the cost is a variable cost

• Direct Materials is a FIXED Cost

• Direct Labor is a Fixed Cost

• Work in Progress is reported on the Income Statement

Which of the following costs is reported under Operating Expenses on the Income statement

• Factory Overhead

• Factory Rent

• Machine Depreciation

• Rent for the Administration Offices

Which of the following is True

• Finished Goods inventory is used to calculate the COGS

• Cell phone bill is a fixed cost

• Factory Overhead is reported under operating expenses on the income statement

• Office salaries are reported under Overhead on the Cost of Goods Manufactured

What is the Operating Income if a company as COGS of 100,000, Sell and Admin Costs of $25,000, Cost of Goods manufactured of $75,000 and Sales of $400,000

• Not enough info to calculate

• 275,000

• 200,000

• 75,000

Which are Product Overhead Costs

• Direct Materials

• Factory Rent

• Factory Depreciation

• Direct Labor

What costs make up Total Manufacturing costs

• Direct Materials

• Direct Labor

• Total Overhead

• Accountants Salary

How do you calculate Cost of Goods Manufactured?

• Total Manufacturing Costs Plus Beginning WIP Minus Ending WIP

• Total Manufacturing Costs plus Direct Materials Purchased minus Beginning Finished Goods

• Direct Labor plus Beginning WIP minus Ending Finished Goods

• I don't know what Cost of Goods Manufactured is.

How do I calculate Cost of Goods Sold

• Beginning Finished Goods Plus Cost of Goods Manufactured Minus Ending Finished Goods

• Beginning Direct Material plus Materials purchased minus ending Direct Materials

• I don't know what Cost of Goods Sold is

• Sales minus Beginning Finished Goods = COGS

What does COGS stand for?

• Cost of goods sold

• Company operation generate salary

• Cost of generational sales