Question

1. A company has already incurred a $55,000 cost in partially producing its three products. Their selling prices when partially and fully processed are shown in the following table with the additional costs necessary to finish their processing. Based on this information, should any products be processed further?

Product	Unfinished Selling Price	Finished Selling Price	Further Processing Costs
A	$72	$108	$35
B	83	124	40
C	94	141	45

Multiple Choice

• All of these products should be processed further.

• Products A and C should be processed further.

• None of these products should be processed further.

• Products A and B should be processed further.

• Products B and C should be processed further.

2. Which of the following entries would record movement of products as they are completed in the manufacturing process and ready to be sold?   

Multiple Choice

• Work in Process          XXX

            Cost of Goods Sold         XXX

• Finished Goods                   XXX

            Work in Process                   XXX

• Cost of Goods Sold         XXX

              Finished Goods               XXX

• Finished Goods          XXX

              Raw Materials             XXX

3. Holmstrom Corporation has provided the following data concerning last month’s operations.

Direct materials	$	14,000
Direct labor cost	$	58,000
Manufacturing overhead applied to Work in Process	$	79,000
Cost of Goods Manufactured	$	145,000

	Beginning			Ending
Work in process inventory	$	47,000		$	53,000
Finished goods inventory	$	41,000		$	42,000

How much is the cost of goods sold on the Schedule of Cost of Goods Sold?

Multiple Choice

• $186,000

• $140,000

• $144,000

• $150,000

4. Property taxes on a company’s factory building would be classified as a(n):

Multiple Choice

• manufacturing overhead cost.

• direct labor cost.

• direct materials cost.

• selling and administrative cost.

Answer 1

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