Question

9. Old Genius Professor Mullen, Inc reported the following year-end information: beginning work in process inventory, (BI,WIP) $80,000; cost of goods manufactured (CGM), $880,000; beginning finished goods inventory, (BI,FG) $50,000; ending work in process inventory, (EI, WIP) $70,000; and ending finished goods inventory, (EI, FG) $40,000. How much is the Old Genius Professor Mullen Inc's cost of goods sold (CGS) for the year? A) $880,000 B) $890,000 C) $870,000 D) $900,000 10. Mullen Jao Soo Company reported total manufacturing costs (TMC) of $150,000, manufacturing overhead (OH) totaling $26,000, and direct materials (DM) totaling $32,000. How much is direct labor (DL) cost? A) Cannot be determined from the information provided. B) $208,000 C) $58,000 D) $92,000 11. Absolute Genius Professor Mullen, Inc has beginning and ending Raw Materials inventories of (BI) $96,000 and (EI) $120,000, respectively. If Direct Materials (DM) used were $390,000, what was the cost of Raw Materials (RM) Purchases? A) $390,000. B) $420,000. C) $366,000. D) $414,000. 12. Most Worthy CCSF Professor, Inc has beginning and ending work in process (WIP) inventories of (BI) $130,000 and (EN) $145,000 respectively. If total manufacturing costs (TMC) are $620,000, what is the total cost of goods manufactured (CGM)? A) $750,000. B) $765,000. C) $605,000. D) $635,000.

Answer 1

9) Cost of goods sold = Beginning finished goods+Cost of goods manufactured-Ending finished goods

= 50000+880000-40000

Cost of goods sold = 890000

So answer is b) $890000

10) Direct labor = Total manufacturing cost-Direct material -Overhead = 150000-32000-26000 = 92000

So answer is d) $92000

11) Raw material purchase = Ending raw material+Direct material used-Beginning raw material

= 120000+390000-96000

Raw material purchase = 414000

So answer is d) $414000

12) Cost of goods manufactured = Beginning WIP+Total manufacturing cost-Ending WIP = 130000+620000-145000 = 605000

So answer is c) $605000