1. A controller is normally involved with:
a. preparing financial statements
b. managing investments
c. raising capital
d. safeguarding assets
e. managing the firm's credit policy
2. Which of the following equations is used to calculate cost of goods sold during the period?
a. Beginning finished goods + cost of goods manufactured + ending finished goods
b. Beginning finished goods - ending finished goods
c. Beginning finished goods + cost of goods manufactured
d. Beginning finished goods + cost of goods manufactured - ending finished goods
e. Beginning finished goods + ending finished goods - cost of goods manufactured
3. Work-in-process inventory is composed of:
a. direct material and direct labor
b. direct labor and manufacturing overhead
c. direct material and manufacturing overhead
d. direct material, direct labor, and manufacturing overhead
e. direct material only
4. Holden Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $56,000 and the cost of goods sold during the month was $125,000. The cost of goods manufactured during July was:
a. $104,000
b. $125,000
c. $117,000
d. $133,000
e. some other amount
5. Carolina Plating Company reported a cost of goods manufactured of $520,000, with the firm's year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively. If supplemental information disclosed raw materials used in production of $80,000, direct labor of $140,000, and manufacturing overhead of $240,000, the company's beginning work in process must have been:
a. $130,000
b. $10,000
c. $66,000
d. $390,000
e. some other amount