Question

37) John Brown Inc.'s accounting records reflect the following inventories: Dec 31.2019 Dec 31, 2020 $BO000 $ 64,000 Raw materials inventory 104,000 116.000 Work in process inventory 92.000 100,000 Finished goods inventory During 2020, John Brown purchased $1.450,000 of raw materials, incurred direct labor costs of $250.000, and incurred manufacturing overhead totaling $160.000. How much is total manufacturing costs incurred during 2020 for John Brown? a $1,864.000 b. $1,876,000 c. $1,860,000 d. $1,872,000 38) Bigtime Company reported the following year-end information: Beginning work in process inventory $ 35,000 Beginning raw materials inventory 18,000 Ending work in process inventory 38,000 Ending raw materials inventory 15,000 Raw materials purchased 560,000 Direct labor 210,000 Manufacturing overhead 120,000 How much is Bigtime's total cost of work in process for the year? a. $925,000 b. $893,000 c. $890,000 d. $928,000 39) XYZ provided the following information, compute the direct materials used. Raw materials inventory, January 1 $ 20,000 Raw materials inventory, December 31 40,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1,700,000 Direct labor 760,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000 a. $1,760,000. b. $1,720,000. c. $1,700,000 d. $1,680,000.

Answer 1

Question 37:

Opening raw material inventory (31dec 2019)	$80,000
Add: Raw material purchases during the year	$1,450,000
Less: Closing raw material inventory (31 dec 2020)	$64,000
Raw material consumed	$1,466,000
Add: Direct labour	$250,000
Add: Manufacturing overheads	$160,000
Total manufacturing costs	$1,876,000

Correct answer is option b.

Question 38:

Beginning raw materials inventory	$18,000
Add: Raw materials purchased	$560,000
Less: Ending raw materials inventory	$15000
Raw materials consumed	$563,000
Add: Direct labour	$210,000
Add: Manufacturing overheads	$120,000
Total manufacturing costs	$893,000
Add: Beginning work in process inventory	$35,000
Total cost of work in process	$928,000

The correct answer is option d.

Question 39:

Opening raw material inventory (jan 1)	$20,000
Add: Raw material purchased	$1,700,000
Less: Closing raw material inventory (dec 31)	$40,000
Raw materials used	$1,680,000

The correct answer is option d.