Question

Part 1: Circle the correct term for completing each of the following sentences. 1. Accounting information that is prepared in accordance with generally accepted accounting principles (GAAP) is called (financial managerial) aceounting. 2. Short-term actions for managing the day-to-day operations of the company are called operational strategic) planning. 3. The wages of assembly-line workers are considered a (product, period) cost. 4. Direct materials costs combined with direct labor costs are called (prime conversion) costs. 5. An example of a factory overhead cost is (plant depreciation office depreciation). 1 Part 2: Determine Cost of Goods Manufactured and Cost of Goods Sold for the month of September 2019. Inventories Materials . Work in Process Finished Goods September 1 $175,000 100,000 50,000 September 30 $150,000 130,000 30,000 $400,000 Materials purchased during September $300,000 180,000 Direct Labor. Factory Overhead

Answer 1

2.

Cost of goods manufactured
Beginning material inventory	$175,000
Material purchases	400,000
Ending material inventory	(150,000)
Direct material used		$425,000
Direct labor		300,000
Factory overhead		180,000
Total manufacturing costs		905,000
Beginning work in process inventory		100,000
Ending work in process inventory		(130,000)
Cost of goods manufactured		$875,000

Cost of Goods Sold
Beginning finished goods inventory	$50,000
Cost of goods manufactured	875,000
Ending finished goods inventory	(30,000)
Cost of goods sold	$895,000