Question

1.Oriole Company's accounting records reflect the following inventories:

	Dec. 31, 2020		Dec. 31, 2019
Raw materials inventory	$330000		$270000
Work in process inventory	300000		160000
Finished goods inventory	190000		150000

During 2020, $820000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000.
Oriole Company's total manufacturing costs incurred in 2020 amounted to

$1930000.

$2030000.

$2070000.

$2130000.

2.Cost of goods sold is obtained from

a.the Raw Materials Inventory control account.

b.analysis of all the control accounts in the cost system.

c.the finished goods inventory records.

d.the work in process inventory records.

3.Marigold Corp. reported the following year-end information: beginning work in process inventory, $90000; cost of goods manufactured, $866000; beginning finished goods inventory, $162000; ending work in process inventory, $130000; and ending finished goods inventory, $174000. Marigold Corp.'s cost of goods sold for the year is

$692000.

$854000.

$826000.

$878000.

Answer 1

1
Direct materials used	760000	=270000+820000-330000
Direct labor costs	670000
Manufacturing overhead	640000
Total manufacturing costs incurred in 2020	2070000
$2070000 is correct option

2

Cost of goods sold is obtained from the finished goods inventory records.

Option C is correct

3
Beginning finished goods inventory	162000
Add: Cost of goods manufactured	866000
Cost of goods available for sale	1028000
Less: Ending finished goods inventory	174000
Cost of goods sold	854000
$854000 is correct option