Question

Question #5 The following data (in thousands of dollars) have been taken from the accounting records of Curry Corporation for the most recent year. $240 320 80 Finished goods inventory, beginning Finished goods inventory, ending Raw materials inventory, beginning Raw materials inventory, ending Work in process inventory, beginning Work in process inventory, ending Administrative expenses Direct labor Manufacturing overhead Purchases of raw materials Sales Selling expenses 140 140 100 300 400 460 240 1,980 The cost of the raw materials used in production during the year (in thousands of dollars) was: 1. $180. 2. $300 3. $320. 4. $380. Question #6 Refer to the Table in Question #5. The cost of goods manufactured for the year (in thousands of dollars) was: 1. $1,000 2. $1,040. 3. $1,080. 4. $1,180.

Answer 1

Solution 5:

Cost of raw materials used = Beginning raw material inventory + Purchases of raw materials - Ending raw materials inventory

= $80 + $240 - $140 = $180

Hence option 1 is correct.

Solution 6:

Cost of goods manufactured = Direct materials + direct labor + Manufacturing Overhead + Beginning WIP - Ending WIP

= $180 + $400 + $460 + $140 - $100 = $1,080

Hence option 3 is correct.

Solution 7:

Cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - ending finished goods inventory

= $240 + $1,080 - $320 = $1,000

Hence option 1 is correct.

Solution 8:

Net income = Sales - COGS - Selling expenses - Administrative expenses

= $1,980 - $1,000 - $280 + $300 = $400

Hence option 2 is correct.