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Accounting Questions

1. Consider the following costs incurred in a recent period:

Direct materials $34,200
Depreciation on factory equipment $14,000
Factory janitor's salary $24,500
Direct labor $29,100
Utilities for factory $10,200
Selling expenses $17,800
Production supervisor's salary $35,500
Administrative expenses $21,600

What was the total amount of the period costs listed above for the period?

a. $67,300
b.$49,600
c.$84,200
d.$39,400

2. Haan Inc. is a merchandising company. Last month the company's cost of goods sold was $67,000. The company's beginning merchandise inventory was $13,600 and its ending merchandise inventory was $16,400. What was the total amount of the company's merchandise purchases for the month?

a.$69,800
b.$97,000
c.$64,200
d.$67,000

3. Management of Solman Corporation has asked your help as an intern in preparing some key reports for June. The beginning balance in the raw materials inventory account was $21,400. During the month, the company made raw materials purchases amounting to $69,800. At the end of the month, the balance in the raw materials inventory account was $30,400. Direct labor cost was $25,700 and manufacturing overhead was $73,000. The beginning balance in the work in process account was $25,000 and the ending balance was $17,900. The beginning balance in the finished goods account was $53,100 and the ending balance was $57,500. Selling expense was $20,800 and administrative expense was $35,500.

The conversion cost for June was:

a.$95,500
b. $98,700
c.$159,500
d.$142,800

4. The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year.

Sales $921
Raw materials inventory, beginning $89
Raw materials inventory, ending $18
Purchases of raw materials $116
Direct labor $128
Manufacturing overhead $200
Administrative expenses $159
Selling expenses $123
Work in process inventory, beginning $27
Work in process inventory, ending $18
Finished goods inventory, beginning $113
Finished goods inventory, ending $145

The cost of goods manufactured (finished) for the year (in thousands of dollars) was:

a.$187
b.$524
c.$542
d.$560

Solution Preview

1. Consider the following costs incurred in a recent period:

Direct materials $34,200
Depreciation on factory equipment $14,000
Factory janitor's salary $24,500
Direct labor $29,100
Utilities for factory $10,200
Selling expenses $17,800
Production supervisor's salary $35,500
Administrative expenses $21,600

What was the total amount of the period costs listed above for the period?

a. $67,300
b.$49,600
c.$84,200
d.$39,400

Selling expenses $17,800
Admin expenses $21,600
Neither of these are "product costs" and so are period costs -- > pick $39,400 (D)

2. Haan Inc. is a merchandising company. Last month the company's cost of goods sold was $67,000. The company's beginning merchandise inventory was $13,600 and its ending merchandise inventory was $16,400. What was the total amount of the ...

Solution Summary

The solution provides sentence and/or computation guide you to the response selected. For the inventory questions, the account activity is shown and then the amounts are "dropped in" so you see how to solve for the needed amounts.

$2.19