16. MC.15-147
A company sells goods for $150,000 that cost $54,000 tomanufacture. Which statement is true?
a.The company will recognize $96,000 gross profit on the balancesheet.
b.The company will decrease finished goods by $54,000.
c.The company will increase finished goods by $54,000.
d.The company will recognize sales on the balance sheet of$150,000.
17. MA.15-190
Bartel Corporation produces bar stools for restaurants. Foreach of the following, indicate whether the cost would typically beconsidered direct or indirect cost for the cost objectgiven.
| Clear All |
| | | The production labor wages for the bar stool assemblers |
| The factory supervisor's salary for the bar stool factory |
| Lubricants used on the bar stool manufacturing equipment |
| Manufacturing costs for wood and steel used in the barstools |
| Nails and screws used in the production of the bar stools |
|
18. MA.15-195
For each of the following, indicate whether the cost wouldtypically be considered product or period cost for the cost objectgiven.
| Clear All |
| | | Electricity costs to run the factory |
| Selling costs for the period |
| Delivery costs to take the bicycles to stores |
|
19. MC.15-141
A company used $35,000 of direct materials, incurred $73,000 indirect labor cost, and had $114,000 in factory overhead costsduring the period. If beginning and ending work in processinventories were $28,000 and $32,000, respectively, the cost ofgoods manufactured was
a.$190,000
b.$226,000
c.$222,000
d.$218,000
20. MC.15-148
The cost of goods sold for Michaels Manufacturing in the currentyear was $233,000. The January 1 finished goods inventory balancewas $31,600, and the December 31 finished goods inventory balancewas $24,200. Cost of goods manufactured during the period was
a.$233,000
b.$240,400
c.$225,600
d.$288,800
