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WorksheetsBAC1054 Topic 1 Part 2
Total questions: 10
Worksheet time: 8mins
In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.
True
False
Product costs are also called inventoriable costs.
True
False
The sum of the direct materials costs, direct labor costs, and beginning work in process is the total manufacturing costs for the year.
True
False
A manufacturing company calculates cost of goods sold as follows:
Beginning FG inventory + cost of goods purchased – ending FG inventory.
Ending FG inventory – cost of goods manufactured + beginning FG inventory.
Beginning FG inventory – cost of goods manufactured – ending FG inventory.
Beginning FG inventory + cost of goods manufactured – ending FG inventory.
Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?
$70,000
$10,000
$60,000
$40,000
Cost of goods manufactured is calculated as follows:
Beginning WIP + direct materials used + direct labor + manufacturing overhead + ending WIP.
Direct materials used + direct labor + manufacturing overhead – beginning WIP + ending WIP.
Beginning WIP + direct materials used + direct labor + manufacturing overhead – ending WIP.
Direct materials used + direct labor + manufacturing overhead – ending WIP – beginning WIP.
Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $816,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Company's cost of goods sold for the year is
$804,000.
$828,000.
$776,000.
$552,000.
Samson Company reported total manufacturing costs of $300,000, manufacturing overhead totaling $52,000, and direct materials totaling $64,000. How much is direct labor cost?
Cannot be determined from the information provided.
$416,000
$236,000
$184,000
The principal difference between a merchandising and a manufacturing income statement is the
cost of goods sold section.
extraordinary item section.
operating expense section.
revenue section.
A manufacturing company reports cost of goods manufactured as a(n)
current asset on the balance sheet.
administrative expense on the income statement.
component in the calculation of cost of goods sold on the income statement.
component of the raw materials inventory on the balance sheet.
