Question

$40 Sales ...... $990 Raw materials inventory, beginning ....... - Raw materials inventory, ending .... $70 Purchases of raw materials...... $120 Direct labor ............ $200 - Manufacturing overhead ...................... $230 Administrative expenses ...................... $150 Selling expenses................. $140 Work in process inventory, beginning........ $70 Work in process inventory, ending ..... ... $50 Finished goods inventory, beginning .......... Finished goods inventory, ending .............. $160 $120 51. The cost of the raw materials used in production during the year (in thousands of dollars) was: A. $190 Rotho = 160 B. $90 C. $150 160-70=90 D. $160 52. The cost of goods sold for the year (in thousands of dollars) was: A. $700 coas= sals-gros maths.. B. $500 C. $660 = 120+ sze- D. $580

Answer 1

Ans 51.

The cost of the raw materials used in production during the year (in thousands of dollars) is calculated as

Particulars	Amount
Raw Material Inventory ,Beginning	$      40.00
Add: Raw Material Purchased	$    120.00
Raw Material Available for use	$    160.00
Less: Raw Material Inventory at end	$      70.00
Raw Material Used	$      90.00

So correct ans is B. $ 90

52.

The cost of goods sold (in thousands of dollars) for the year is calculated as

Beginning Finished Goods Invenory + Cost of Goods Manufactured - Ending Finished Goods Inventory

So Cost of Goods Manufactured is calculated as

Particulars	Amount
Raw Material Used	$      90.00
Direct Labor	$    200.00
Manufacturing Overhead	$    230.00
Total Manufacturing Cost	$    520.00
Add : Beginning WIP Inventory	$      70.00
Less : Ending WIP Inventory	$      50.00
Cost of Goods Manufactured	$    540.00

Now, cost of goods sold (in thousands of dollars) for the year is

Particulars	Amount
Beginning Finished Goods Invenory	$    120.00
Add: Cost of Goods Manufactured	$    540.00
Goods Available	$    660.00
Less: Ending Finished Goods Inventory	$    160.00
Cost of Goods Sold	$    500.00

So the correct ans is B. $ 500