University:
University of Missouri
Course:
MANGMT 3540 | Introduction to Business Law
Academic year:

2023
Views:

346

Pages:

3
Author:

Gemma S

Exercises 1. The following costs were incurred in August: Conversion costs during the month totaled: A. $127,000 B. $51,000 C. $52,000 D. $75,000 Direct labor = 14,000 $ Manufacturing overhead 38,000 $ = 14,000+38,000= 52,000 2. The following costs were incurred in August: Prime costs during the month totaled: A. $39,000 B. $59,000 C. $96,000 D. $38,000 Direct material = 20,000 $ Direct labor 18,000 $ = 20,000+18,000= 38,000 3. During the month of August, direct labor cost totaled $13,000 and direct labor cost was 20% of prime cost. If total manufacturing costs during August were $88,000, the manufacturing overhead was: A. $75,000 B. $23,000 C. $65,000 D. $52,000 1 Direct labor cost total = 13,000 $ & its equal prime cost which is 20% = 13,000 ÷ 20% = 65,000. Total manufacturing = 88,000 Total manufacturing – prime cost = manufacturing overhead. 88,000- 65,000= 23,000 4. In August direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $34,000, the direct labor cost was: A. $36,000 B. $22,667 C. $51,000 D. $81,000 0.60 *Conversion cost = Direct labor 100-60=40/100=0.4 0.40* Conversion costs = Manufacturing overhead 0.40* Conversion costs = 54,000 54000÷ 0.40= 135,0000 Conversion costs = 135, 000 Conversion cost = Direct labor + Manufacturing overhead 135,000 = Direct labor+54,000 Direct labor = 81,000 6. Consider the following costs incurred in a recent period: What was the total amount of the period costs listed above for the period? A. $78,000 B. $71,000 C. $46,000 D. $37,000 Selling expenses + admin expenses = 16,000 +21,000 = 37,000 2 8. Last month a manufacturing company had the following operating results: What was the cost of goods manufactured for the month? A. $350,000 B. $385,000 C. $377,000 D. $323,000 Sales- Cost of goods sold= gross margin 412,000- Cost of goods sold=62,000 Cost of goods sold= 350,000 BFGI+COFGM-EFGI=COGS 90,000+ COFGM-63,000=350,000 Cost of goods manufactured = $323,000 9. Gabrisch Inc. is a merchandising company. Last month the company's merchandise purchases totaled $90,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month? A. $90,000 B. $99,000 C. $125,000 D. $81,000 MIB+MP= (13,000+90,000)=103,000 GAFS-FGINE=(103,000-22,000)= 81,000 3

Exercises Managerial Decisions

Related Documents

Recommended Documents

Description

Related Documents

Free up your schedule!

Take 5 seconds to unlock