1. Valles Corporation had $22,000 of raw materials on hand onFebruary 1. During the month, the company purchased an additional$75,000 of raw materials. The journal entry to record the purchaseof raw materials would include a:
a. credit to Raw Materials of $97,000
b. debit to Raw Materials of $97,000
c. credit to Raw Materials of $75,000
d. debitto Raw Materials of $75,000
2. Wedd Corporation had $35,000 of raw materials on hand onMay 1. During the month, the company purchased an additional$68,000 of raw materials. During May, $92,000 of raw materials wererequisitioned from the storeroom for use in production. These rawmaterials included both direct and indirect materials. The indirectmaterials totaled $5,000. The debits to the Work in Process accountas a consequence of the raw materials transactions in Maytotal:
a. $92,000
b. $0
c. $68,000
d. $87,000
3. Another term for product cost is
a. Period Cost
b. Value-Adding Cost
c. Variable Cost
d. Inventoriable Cost
4. Conversion Costs consist of
a. Direct Materials and Direct Labor
b. Direct Materials and Overhead
c. Direct Labor and Overhead
d. Direct Materials and Indirect Materials
5. The three costs in every product are
a. Direct materials, Work in Process, and Overhead
b. Direct materials, Work in Process, and Finished Goods
c. Direct materials, Direct Labor, and Overhead
d. Direct materials, Direct Labor, and Work in Process
6. Cost of Goods Manufactured is equal to
a. Direct Materials + Direct Labor + Overhead
b. Beginning Work in Process + Total Manufacturing Costs +Ending Work in Process
c. Beginning Work in Process + Period Costs - Ending Work inProcess
d. Beginning Work in Process + Total Manufacturing Costs -Ending Work in Process
7. Which of the following equations is correct
a. Total Manufacturing Costs = Direct Materials + Direct Labor+ Selling Costs
b. Total Manufacturing Costs = Direct Materials + Direct Labor+ Overhead
c. Total Manufacturing Costs = Direct Materials + Direct Labor+ Selling, General and Administrative Costs
d. Total Manufacturing Costs = Product Costs + PeriodCosts
8. The ending balance in Work in Process represents
a. Units started but not completed
b. Units completed but not sold
c. Units to which no overhead has been applied
d. Units that have not been started
9. Consider the following information: direct materials usedtotaled $134,600; direct labor amounted to $396,800; overhead wascomputed to be $789,600; Work in Process Inventory on January 1,2017, was $378,200; and Work in Process Inventory on December 31,2017, was $385,200. What was the cost of goods manufactured?
a. $1,314,000
b. $1,321,000
c. $1,328,000
d. $2,084,400
10. The Finished Goods Inventory and Cost of Goods Sold for amanufacturing company for the year 2017 are as follows: January 1Finished Goods Inventory, $382,500; December 31 Finished GoodsInventory, $270,000; Cost of Goods Sold for the year, $1,522,000.The cost of goods manufactured for the year was
a. $1,139,500
b. $644,500
c. $1,184,500
d. $1,409,500
11. In a manufacturing environment, costs of indirectmaterials initially flow
a. into the Work in Process Inventory account.
b. into the Materials Inventory account.
c. directly to the Overhead account.
d. into the Finished Goods Inventory account.
12. Caspar Co. had the following balances in 2017:
Beginning Raw Materials Inventory $ 5,000
Ending Raw Materials Inventory $ 7,000
Purchases of Raw Materials $60,000
Beginning Work in Process Inventory $15,000
Ending Work in Process Inventory $18,000
Beginning Finished Goods Inventory $ 3,000
Ending Finished Goods Inventory $ 8,000
Direct Labor $45,000
Overhead (including $2,000 of Indirect Materials) $35,000
Calculate the following:
a. Raw Materials Available for Use:______________________________
b. Direct Materials Used:_______________________________
c. Total Manufacturing Costs:_______________________________
d. Cost of Goods Manufactured:_______________________________
