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.
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 |
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