For last year, Lewisburn Manufacturing reported the following:
|
Revenue
|
$420,000
|
|
Beginning inventory of direct materials, January 1
|
22,000
|
|
Purchases of direct materials
|
146,000
|
|
Ending inventory of direct materials, December 31
|
16,000
|
|
Direct manufacturing labor
|
18,000
|
|
Indirect manufacturing costs
|
40,000
|
|
Beginning inventory of finished goods, January 1
|
35,000
|
|
Cost of goods manufactured
|
104,000
|
|
Ending inventory of finished goods, December 31
|
36,000
|
|
Operating costs
|
140,000
|
What was Lewisburn's operating income?
A) $76,000 B) $177,000 C) $128,000 D) $280,000
9) For last year, Lewisburn Manufacturing reported the following:
|
Revenue
|
$420,000
|
|
Beginning inventory of direct materials, January 1
|
22,000
|
|
Purchases of direct materials
|
146,000
|
|
Ending inventory of direct materials, December 31
|
16,000
|
|
Direct manufacturing labor
|
18,000
|
|
Indirect manufacturing costs
|
40,000
|
|
Beginning inventory of finished goods, January 1
|
35,000
|
|
Cost of goods manufactured
|
104,000
|
|
Ending inventory of finished goods, December 31
|
36,000
|
|
Operating costs
|
140,000
|
How much of the above would be considered period costs for Lewisburn Manufacturing?
A) $140,000 B) $246,000 C) $104,000 D) $390,000
10) Rodney Worsham is paid $10 an hour for straight-time and $15 an hour for overtime. One week he worked 45 hours, which included 5 hours of overtime, and 3 hours of idle time caused by material shortages. Compensation would be reported as:
A) $450 of direct labor and $25 of manufacturing overhead
B) $445 of direct labor and $30 of manufacturing overhead
C) $420 of direct labor and $55 of manufacturing overhead
D) $370 of direct labor and $105 of manufacturing overhead