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In a traditional manufacturing environment as the cost of goods sold account increases

In a traditional manufacturing environment, as the cost of goods sold account increases, which account is most likely decreasing? 
A. Work in process inventory
B. Finished goods inventory
C. Raw materials inventory
D. Cash

 

42. Brenda's Bakery has the following information available for October:
 

 Beginning Ending

Raw materials$  4,000 $  2,000

Work-in-process32,000 17,000

Finished goods5,000 3,000

 Cost of goods manufactured  88,000

 Cost of goods sold  90,000

 Direct labor costs  35,000

 Factory rent and depreciation  10,000

Selling expenses  3,000

 


How much raw material was purchased in October? 
A. $23,000
B. $25,000
C. $26,000
D. $28,000

 

43. Johnson Manufacturing has the following selected information available for the year:
 

Direct material purchased$  40,000

Direct material used45,000

Direct labor incurred75,000

Manufacturing overhead incurred50,000

Cost of goods manufactured100,000

 


In addition, the cost of the finished goods inventory increased by $10,000 from the beginning to the end of the year. Cost of goods sold for the year is: 
A. $  80,000.
B. $170,000.
C. $  90,000.
D. $110,000.

 

44. Franklin Street Manufacturing
Franklin Street Manufacturing has the following cost information available for 2011:
 

Direct materials used$10,000

Direct labor costs25,000

Factory overhead20,000

Marketing expenses4,000

Administrative expenses6,000

 


20,000 units were produced during the year out of which 19,000 units were sold for $10 each.

Refer to the Franklin Street Manufacturing information above. What is cost of goods sold for 2011? 
A. $55,000
B. $52,250
C. $61,750
D. $65,000

 

45. Franklin Street Manufacturing
Franklin Street Manufacturing has the following cost information available for 2011:
 

Direct materials used$10,000

Direct labor costs25,000

Factory overhead20,000

Marketing expenses4,000

Administrative expenses6,000

 


20,000 units were produced during the year out of which 19,000 units were sold for $10 each.

Refer to the Franklin Street Manufacturing information above. What is net operating income for 2011? (Ignore taxes) 
A. $127,750
B. $137,750
C. $125,000
D. $128,250

 

46. Which of the following increases the work in process account? 
A. Cost of goods sold
B. Sales commission
C. Administrative costs
D. Raw material used

 

47. Which of the following decreases the work in process account? 
A. Transferring raw materials to work in process account.
B. Transferring cost of goods manufactured from work in process account.
C. Transferring cost of goods sold from work in process account.
D. Transferring raw materials from work in process account.

 

48. Product costs that are transferred into finished goods inventory are called: 
A. cost of goods manufactured.
B. cost of goods sold.
C. period costs.
D. raw materials used.

 

49. Product costs that are transferred out of finished goods are called: 
A. work in process.
B. cost of goods manufactured.
C. cost of goods sold.
D. period costs.

 

50. Which of the following types of companies would not have the following cost pattern?

Raw materials ® Work-in-process ® Finished goods ® Cost of goods sold 
A. Tire manufacturer
B. Automotive manufacturer
C. Retailer / merchandiser
D. Construction company

Jan 09 2020 View more View Less

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