Question

1： All the following costs should be considered direct costs of providing delivery room services: the costs of drugs administered in the operating room, the attending physician's fees, and a portion of the liability insurance carried by the hospital to cover the delivery room.

Group startsTrue or False

True, unselectedFalse, unselected

2：

Meyers Company had the following inventory balances at the beginning and end of November:

	November 1	November 30
Raw Materials	$17,000	$20,000
Finished Goods	$50,000	$44,000
Work in Process	$9,000	$11,000

During November, $39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $8 per direct labour-hour, and it paid its direct labour workers $10 per hour. A total of 300 hours of direct labour time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $4,700 of direct materials cost. The Company incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost.

The raw materials purchased during November totaled:

Multiple Choice

• $36,000.

• $42,000.

• $39,000.

• $45,000.

3 .

Mayberry Company reported the following data for the year just ended:

Raw materials used in production	$800,000
Direct labour	$700,000
Total overhead costs	$900,000
Beginning work in process inventory	$500,000
Cost of goods manufactured	$2,500,000

The ending work in process inventory was:

Multiple Choice

• $1,300,000.

• $100,000.

• $400,000.

• $300,000.

Answer 1

1

FALSE

The cost of liability insurance carried by the hospital to cover the delivery room is not a direct cost.

Raw materials used in production	39000
Add: Raw Materials, November 30	20000
Less: Raw Materials, November 1	-17000
Raw materials purchased during November	42000
$42,000 is correct option

3
Beginning work in process inventory	500000
Raw materials used in production	800000
Direct labour	700000
Total overhead costs	900000
Total costs of work in process	2900000
Less: Cost of goods manufactured	2500000
Ending work in process inventory	400000
$400,000 is correct option