unang pasahod

Cost Accounting 1
Practice Problems
Cost terms and terminologies
J.Echivarria
________________________________________________________________________________

Multiple Choice
Identify the choice that best completes the statement or answers the question.

Mitchell Company

The following information has been taken from the cost records of Mitchell Company for the past year:

Raw material used in production
$326
Total manufacturing costs charged to production during the year (includes direct material, direct labor, and overhead equal to 60% of direct labor cost)
686
Cost of goods available for sale
826
Selling and Administrative expenses
25

Inventories
Beginning
Ending
Raw Material
$75
$ 85
Work in Process
80
30
Finished Goods
90
110

____ 1. Refer to Mitchell Company. The cost of raw material purchased during the year was
a.
$316.
b.
$336.
c.
$360.
d.
$411.

____ 2. Refer to Mitchell Company. Direct labor cost charged to production during the year was
a.
$135.
b.
$216.
c.
$225.
d.
$360.

____ 3. Refer to Mitchell Company. Cost of Goods Manufactured was
a.
$636.
b.
$716.
c.
$736.
d.
$766.

____ 4. Refer to Mitchell Company. Cost of Goods Sold was
a.
$691.
b.
$716.
c.
$736.
d.
$801.

____ 5. Steelman Company manufacturers desks. The beginning balance of Raw Material Inventory was $4,500; raw material purchases of $29,600 were made during the month. At month end, $7,700 of raw material was on hand. Raw material used during the month was
a.
$26,400.
b.
$34,100.
c.
$37,300.
d.
$29,600.

____ 6. Legend Company manufacturers tables. If raw material used was $80,000 and Raw Material Inventory at the beginning and end of the period, respectively, was $17,000 and $21,000, what was amount of raw material was purchased?
a.
$76,000
b.
$118,000
c.
$84,000
d.
$101,000

____ 7. Morris Company manufacturers computer stands. What is the beginning balance of Finished Goods