Direct material used 45,000 Direct incurred 75,000 Manufacturing overhead incurred 50,000 Cost of goods manufactured 100,000 In addition, the cost of the finished goods inventory increased by $10,000 from the beginning to the end of the year. Cost of goods sold for the year is: A. $ 80,000 B. $170,000 C. $ 90,000 D. $110,000 74. Chancellor Industries, a manufacturing company, prepays its insurance coverage for a two-year period. The premium for two-year's worth of coverage is $14,400 and is paid at the beginning of the first year. Two-thirds of the premium relates to factory operations and one-third relates to selling and administrative activities. The amount of premium that should be recorded as a product cost for the first year is: A. $ 4,800 B. $ 2,400 C. $ 9,600 D. $14,400 75. Clapton Inc. would like to prepare an income statement for March. Their production department records show that total product costs in March were $225,000 when 50,000 units were produced. Their sales department records show that 46,000 units were sold for $16 each. Monthly administrative and marketing expenses totaled $60,000. What should be net income for March? A. $529,000 B. $473,800 C. $451,000 D. $469,000 76. Which of the following statements is regarding period costs? true A. They "attach" themselves to the product. B. They will appear the balance sheet until the product is sold. C. They will appear on the income statement in the year they are incurred. D. They will not impact gross margin or net income. 77. Franklin Street Manufacturing Franklin Street Manufacturing has the following cost information available for 2009: Direct materials used $10,000 Direct labor costs 25,000 Factory overhead 20,000
Direct material used 45,000 Direct incurred 75,000 Manufacturing overhead incurred 50,000 Cost of goods manufactured 100,000 In addition, the cost of the finished goods inventory increased by $10,000 from the beginning to the end of the year. Cost of goods sold for the year is: A. $ 80,000 B. $170,000 C. $ 90,000 D. $110,000 74. Chancellor Industries, a manufacturing company, prepays its insurance coverage for a two-year period. The premium for two-year's worth of coverage is $14,400 and is paid at the beginning of the first year. Two-thirds of the premium relates to factory operations and one-third relates to selling and administrative activities. The amount of premium that should be recorded as a product cost for the first year is: A. $ 4,800 B. $ 2,400 C. $ 9,600 D. $14,400 75. Clapton Inc. would like to prepare an income statement for March. Their production department records show that total product costs in March were $225,000 when 50,000 units were produced. Their sales department records show that 46,000 units were sold for $16 each. Monthly administrative and marketing expenses totaled $60,000. What should be net income for March? A. $529,000 B. $473,800 C. $451,000 D. $469,000 76. Which of the following statements is true regarding period costs? A. They "attach" themselves to the product. B. They will appear the balance sheet until the product is sold. C. They will appear on the income statement in the year they are incurred. D. They will not impact gross margin or net income. 77. Franklin Street Manufacturing Franklin Street Manufacturing has the following cost information available for 2009: Direct materials used $10,000 Direct labor costs 25,000 Factory overhead 20,000
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