Multiple Choice Answers

The following information pertains to Bright Toy Company’s operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012. Purchases $ 126,000 Selling and Administrative Expenses 90,000 Merchandise inventory, 1/1/2012 14,000 Merchandise inventory, 12/31/2012 10,000 Sales Revenue 250,000 What is the gross profit for 2012?  $120,000
$130,000
$140,000
$136,000
None of these is correct

The following information pertains to Bright Toy Company’s operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012. Purchases $ 126,000 Selling and Administrative Expenses 90,000 Merchandise inventory, 1/1/2012 14,000 Merchandise inventory, 12/31/2012 10,000 Sales Revenue 250,000 What is the cost of goods sold for 2012?  $104,000
$124,000
$130,000
$140,000
None of these is correct

Manufacturing businesses have inventory accounts, but service and merchandising businesses do not.
True
False

The following information pertains to Bright Toy Company’s operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012. Purchases $ 126,000 Selling and Administrative Expenses 90,000 Merchandise inventory, 1/1/2012 14,000 Merchandise inventory, 12/31/2012 10,000 Sales Revenue 250,000 What is the cost per unit sold?
$13.00
$12.40
$14.00 $10.40
None of these is correct

On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below. Materials inventory Work in process inventory Finished goods inventory Manufacturing overhead 10,000 20,000 25,000 41,000 During June, the following transactions took place: June 2: Issue $2,400 of direct materials and $200 of indirect materials to production. June 13: Pay $7,500 of direct factory labor cost, and $14,100 of indirect factory labor cost. Following these transactions, what was the balance in the Work in process inventory account?  $29,900
$9,900
$44,200
$22,200
None of these is correct

Which of the following describes the cost of goods manufactured?
The cost of the goods that were sold during the period
The total cost of all goods that were completed, or partially completed during the period
The cost of those goods which were completed during the period
The total costs in inventory at the end of the period

A service company’s income statement does NOT include cost of goods sold.
True
False

On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below. Materials inventory Work in process inventory Finished goods inventory Manufacturing overhead 10,000 20,000 25,000 41,000 During June, the following transactions took place: June 2: Issue $2,400 of direct materials and $200 of indirect materials to production. Following this transaction, what was the balance in the Work in process inventory account?  $20,000
$22,400
$22,600
$20,200
None of these is correct

Which of the following companies would NOT use job order costing?
A lawn maintenance company
A legal firm
An auto repair shop
A beverage manufacturer

Selected data for Young Company for 2012 is presented below: Direct labor incurred $30,000 Indirect labor incurred 21,000 Factory depreciation 5,000 Factory utilities 7,000 Indirect materials used 2,000 Direct materials used 12,000 Property taxes on factory building 3,000 Sales commissions 8,000 What is the manufacturing overhead?
$47,000
$50,000
$38,000
$46,000
None of these is correct