Chapter 2: an introduction to cost terms and purposes true/false
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a. What is the average manufacturing cost per unit? b. What is the amount of ending finished goods inventory? c. What is the amount of gross margin? Answer: a. $2,400,000 / 40,000 = $60.00 b. (40,000 – 39,800) x $60 = $12,000 c. 39,800 x ($100 - $60) = $1,592,000 Difficulty: 2 Objectives: 3, 4, 7 153. Cheaney Incorporated reports the following information. On January 31, 20x1, Job #101 was the only job in process with accumulated costs of: Direct materials $2,000 Direct manufacturing labor 1,000 Manufacturing overhead 1,000 Total $4,000 During February, Job #102 and Job #103 were started and the following costs were added: Job #101 Job #102 Job #103 Direct materials $4,000 $5,000 $6,000 Direct manufacturing labor 1,000 2,000 3,000 Manufacturing overhead 2,000 3,000 4,000 Total $7,000 $10,000 $13,000 On February 28, 20x1: Job #101 was completed and sold for $20,000. Job #102 was completed but not sold. Job #103 remains in production. Required: Using the above information, determine the following amounts: a. Work-in-process inventory on February 1, 20x1. b. Work-in-process inventory on February 28, 20x1. c. Finished goods inventory on February 28, 20x1. d. Cost of goods manufactured for February. e Cost of goods sold for February. f. Gross margin for February. Answer: a. $4,000 b. Job #103 $13,000 c. Job #102 $10,000 d. (Job #101 $11,000) + (Job #102 $10,000) = $21,000 e. Job #101 $11,000 f. $20,000 - $11,000 = $9,000 Difficulty: 2 Objectives: 6, 7 154. Evans Inc. had the following activities during 20x1: Direct materials: Download 180.5 Kb. Share with your friends:
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