In the income statement of a manufacturing company, what replaces

  

Question 1 pts

In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?

  

Finished goods

 

Cost of merchandise available

  

Cost of goods manufactured

 

Work in process completed

Question 2 pts

Which of the following accounts will be found on the income statement?

  

inventory

 

work in process

  

finished goods

 

cost of merchandise sold

Question 3 pts

Cost of Materials Used       $40,000
Direct Labor costs              $55,000
Factory Overhead               $32,000
Work in Process, beg.         $28,000
Work in Process, end.         $18,000
 

What is Cost of Goods Manufactured?

  

$173,000

 

$97,000

  

$117,000

 

$137,000

Question 4 pts

Cost of Materials Used      $40,000
Direct Labor costs             $55,000
Factory Overhead              $32,000
Work in Process, beg.        $28,000
Work in Process, end.        $18,000
Finished Goods,beg.           $28,000
Finished Goods, end.          $18,000
 

What is Cost of Goods Sold?

  

$147,000

 

$137,000

  

$10,000

 

$128,000

Question 5 pts

  

Beginning Raw Materials Inventory

$75,000

 

Materials purchased

$20,000

 

Ending Raw Materials Inventory

$30,000

    

How much are Raw Materials Used?

  

$25,000

 

$45,000

  

$65,000

 

$20,000

Question 6 pts

A company manufactured 50,000 units of a product at a cost of $250,000.  They sold 40,000 units for $10 each.  What is Gross Margin?

  

$150,000

 

$200,000

  

$400,000

 

$250,000

Question 7 pts

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

  

True

 

False

Question 8 pts

Only the value of the inventory that is sold will appear in the income statement.

  

True

 

False