TAMUC ACCT 525 Spring 2015 Quiz 1 Answers
The accounting records of Dolphin Company revealed the following information:
Total manufacturing costs
$ 600,000
Work-in-process inventory, Jan. 1
63,000
Work-in-process inventory, Dec. 31
85,000
Finished-goods inventory, Jan. 1
153,000
Finished-goods inventory, Dec. 31
130,000
Dolphin's cost of goods sold is:
$578,000.
$599,000.
None of these.
$623,000.
$601,000.
If a company sells goods that cost $103,000 for $124,800, the firm will:
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reduce Finished-Goods Inventory by $103,000.
reduce Finished-Goods Inventory by $124,800.
report sales revenue on the balance sheet of $124,800.
reduce Cost of Goods Sold by $103,000.
Follow more than one of the above procedures.
Product costs are:
subtracted from cost of goods sold.
treated in the same manner as advertising costs.
treated in the same manner as period costs.
inventoried.
expensed when incurred.
Armada Company applies manufacturing overhead by using a predetermined rate of 110% of direct labor cost. The data that follow pertain to job no. 831:
Direct material cost
$ 89,000
Direct labor cost
42,000
If Armada adds a 10% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the credit sale of job no. 831?
Account Debited
Amount
A. Accounts receivable
$ 177,200
B. Accounts receivable
$ 194,920
C. Finished-goods inventory
$ 177,200
D. Finished-goods inventory
$ 194,920
E. Sales revenue
$ 194,920
Choice E
Choice C
Choice D
Choice A
Choice B
The accounting records of Georgia Company revealed the following costs: direct materials used, $270,000; direct labor, $445,000; manufacturing overhead, $377,000; and selling and administrative expenses, $230,000. Georgia's product costs total:
$862,000.
None of these....