79.

If the company transferred $38,000 of completed goods from work in process to finished goods
during March, what was the amount of the cost of goods sold?
A) $38,000
B) $43,000
C) $30,000
D) $46,000
Level: Medium LO: 3 Ans: D

Use the following information to answer 80-81

Servix, Inc., produces water pumps. Each water pump contains a small valve that costs $5. During May,
600 valves were drawn from the supply room and installed in water pumps in the production process.
Eighty percent of these units were completed and transferred into finished goods warehouses. Of the units
completed, thirty percent were still unsold at the end of the month. There were no beginning inventories.

80. The cost of valves in work in process at the end of May would be:
A) $2,400
B) $3,000
C) $600
D) $720
Level: Easy LO: 4 Ans: C

81. The cost of valves in cost of goods sold for May would be:
A) $1,680
B) $2,100
C) $900
D) $720
Level: Easy LO: 3 Ans: A

Use the following information to answer 82-83

The manufacturing operations of Jones Company had the following inventory balances for the month of
March:

82. If the company purchased $20,000 of raw materials during March, what was the cost of raw materials
used in production?
A) $24,000
B) $22,000
C) $32,000
D) $18,000
Level: Medium LO: 4 Ans: D

20 Brewer, Introduction to Managerial Accounting, 3/e

83. If the company transferred $40,000 of completed goods from work in process to finished goods
during March, what was the amount of the cost of goods sold?
A) $47,000
B) $40,000
C) $33,000
D) $44,000
Level: Medium LO: 4 Ans: A

Use the following information to answer 84-85

At a sales volume of 30,000 units, Carne Company’s total fixed costs are $30,000 and total variable costs
are $45,000. The relevant range is 20,000 to 40,000 units.

84. If Carne Company were to sell 32,000 units, the total expected cost would be:
A) $75,000
B) $78,000
C) $80,000
D) $77,000
Level: Easy LO: 5 Ans: B

85. If Carne Company were to sell 40,000 units, the total expected cost per unit would be:
A) $2.50
B) $2.25
C) $2.13
D) $1.88
Level: Easy LO: 5 Ans: B

Use the following information to answer 86-88

A partial listing of costs incurred at Gilhooly Corporation during September appears below:

86. The total of the manufacturing overhead costs listed above for September is:
A) $669,000
B) $366,000
C) $34,000
D) $59,000

Brewer, Introduction to Managerial Accounting, 3/e 21

Level: Medium LO: 1 Ans: D

22 Brewer, Introduction to Managerial Accounting, 3/e

87. The total of the product costs listed above for September is:
A) $59,000
B) $366,000
C) $669,000
D) $303,000
Level: Medium LO: 2 Ans: B

88. The total of the period costs listed above for September is:
A) $303,000
B) $59,000
C) $366,000
D) $362,000
Level: Medium LO: 2 Ans: A

Use the following information to answer 89-91

A partial listing of costs incurred during December at Rooks Corporation appears below:

89. The total of the period costs listed above for December is:
A) $82,000
B) $340,000
C) $389,000
D) $307,000
Level: Medium LO: 2
Refer To: 01_10 Ans: D

90. The total of the manufacturing overhead costs listed above for December is:
A) $30,000
B) $82,000
C) $647,000
D) $340,000
Level: Medium LO: 1 Ans: B

Brewer, Introduction to Managerial Accounting, 3/e 23

91. The total of the product costs listed above for December is:
A) $340,000
B) $82,000
C) $647,000
D) $307,000
Level: Medium LO: 2 Ans: A

Use the following information to answer 92-93

Cohill Corporation reported the following data for the month of July:

92. If the raw materials purchased during July totaled $66,000, what was the cost of the raw materials
used in production for the month?
A) $49,000
B) $67,000
C) $66,000
D) $65,000
Level: Easy LO: 1,3 Ans: D

93. If the company transferred $225,000 of completed goods from work in process to finished goods
inventory during July, what was the cost of goods sold for the month?
A) $231,000
B) $208,000
C) $242,000
D) $225,000
Level: Easy LO: 3 Ans: B

24 Brewer, Introduction to Managerial Accounting, 3/e

Use the following information to answer 94-95
Abare Corporation reported the following data for the month of December:

Additional information:

94. The conversion cost for December was:

A) $134,000
B) $109,000
C) $192,000
D) $129,000
Level: Medium LO: 1 Ans: D

95. The prime cost for December was:

A) $129,000
B) $115,000
C) $109,000
D) $62,000
Level: Medium LO: 1 Ans: B

Use the following information to answer 96-97

Management of Lewallen Corporation has asked your help as an intern in preparing some key reports for
September. The beginning balance in the raw materials inventory account was $25,000. During the
month, the company made raw materials purchases amounting to $60,000. At the end of the month, the
balance in the raw materials inventory account was $28,000. Direct labor cost was $43,000 and
manufacturing overhead cost was $71,000. The beginning balance in the work in process account was
$23,000 and the ending balance was $11,000. The beginning balance in the finished goods account was
$29,000 and the ending balance was $45,000. Selling expense was $15,000 and administrative expense
was $32,000.

96. The conversion cost for September was:

A) $114,000
B) $131,000
C) $171,000
D) $103,000
Level: Medium LO: 1 Ans: A

Brewer, Introduction to Managerial Accounting, 3/e 25

97. The prime cost for September was:
A) $114,000
B) $100,000
C) $103,000
D) $47,000
Level: Medium LO: 1 Ans: B

Use the following information to answer 98-101

Dullea Corporation reported the following data for the month of May:

Additional information:

98. The total manufacturing cost for May was:

A) $187,000
B) $76,000
C) $121,000
D) $194,000
Level: Medium LO: 3,4 Ans: A

99. The cost of goods manufactured for May was:

A) $194,000
B) $121,000
C) $180,000
D) $187,000
Level: Medium LO: 3,4 Ans: A

100. The cost of goods sold for May was:

A) $261,000
B) $149,000
C) $165,000
D) $223,000
Level: Medium LO: 3,4 Ans: C

26 Brewer, Introduction to Managerial Accounting, 3/e

101. The net operating income for May was:
A) $125,000
B) $55,000
C) $33,000
D) $99,000
Level: Medium LO: 3,4 Ans: B

Use the following information to answer 102-105

Management of Melendes Corporation has asked your help as an intern in preparing some key reports for
October. The company started the month with raw materials inventories of $38,000. During the month,
the company made raw materials purchases amounting to $71,000. At the end of the month, raw materials
inventories totaled $22,000. Direct labor cost was $45,000 and manufacturing overhead cost was $79,000.
The beginning balance in the work in process account was $16,000 and the ending balance was $22,000.
The beginning balance in the finished goods account was $38,000 and the ending balance was $49,000.
Sales totaled $250,000. Selling expense was $24,000 and administrative expense was $31,000.

102. The total manufacturing cost for October was:

A) $79,000
B) $195,000
C) $211,000
D) $124,000
Level: Medium LO: 3,4 Ans: C

103. The cost of goods manufactured for October was:

A) $217,000
B) $211,000
C) $195,000
D) $205,000
Level: Medium LO: 3,4 Ans: D

104. The cost of goods sold for October was:

A) $216,000
B) $194,000
C) $148,000
D) $239,000
Level: Medium LO: 3,4 Ans: B

105. The net operating income for October was:

A) $56,000
B) $0
C) $71,000
D) $1,000
Level: Medium LO: 3,4 Ans: D

Brewer, Introduction to Managerial Accounting, 3/e 27

Use the following information to answer 106-109
Henley Corporation reported the following data for the month of July:

Additional information:

106. The total manufacturing cost for July was:

A) $54,000
B) $90,000
C) $145,000
D) $147,000
Level: Medium LO: 3,4 Ans: C

107. The cost of goods manufactured for July was:

A) $148,000
B) $142,000
C) $147,000
D) $145,000
Level: Medium LO: 3,4 Ans: A

108. The cost of goods sold for July was:

A) $134,000
B) $162,000
C) $106,000
D) $224,000
Level: Medium LO: 3,4 Ans: B

109. The net operating income for July was:

A) $79,000
B) $48,000
C) $7,000
D) $22,000
Level: Medium LO: 3,4 Ans: C

28 Brewer, Introduction to Managerial Accounting, 3/e

Use the following information to answer 110-111
Lambertson Corporation reported the following data for the month of March:

Additional information:

110. The cost of goods sold for March was:

A) $110,000
B) $177,000
C) $215,000
D) $147,000
Level: Medium LO: 3,4 Ans: D

111. The net operating income for March was:

A) $79,000
B) $25,000
C) $83,000
D) $2,000
Level: Medium LO: 3,4 Ans: B

Brewer, Introduction to Managerial Accounting, 3/e 29

Use the following information to answer 112-113
Nives Corporation reported the following data for the month of January:

Additional information:

112. The total manufacturing cost for January was:

A) $86,000
B) $198,000
C) $121,000
D) $187,000
Level: Medium LO: 3,4 Ans: B

113. The net operating income for January was:

A) $14,000
B) $16,000
C) $91,000
D) $82,000
Level: Medium LO: 3,4 Ans: A

Use the following information to answer 114-117

Management of Shandley Corporation has asked your help as an intern in preparing some key reports for
August. The beginning balance in the raw materials inventory account was $21,000. During the month,
the company made raw materials purchases amounting to $59,000. At the end of the month, the balance in
the raw materials inventory account was $22,000. Direct labor cost was $39,000 and manufacturing
overhead cost was $71,000. The beginning balance in the work in process account was $12,000 and the
ending balance was $18,000. The beginning balance in the finished goods account was $30,000 and the
ending balance was $54,000. Sales totaled $220,000. Selling expense was $11,000 and administrative
expense was $34,000.

30 Brewer, Introduction to Managerial Accounting, 3/e