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    Accounting Questions

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    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

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    https://brainmass.com/business/accounting/accounting-inventory-questions-414357

    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

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