Quantitative multiple choice questions on the actual final exam will have multip
ID: 2456543 • Letter: Q
Question
Quantitative multiple choice questions on the actual final exam will have multiple choices from which to select the correct answer.
1. Ceradyne uses a job-order costing system. It reported the following amounts for March:
Work in process, March 1
$36,000
Finished goods, March 1
$12,800
Work in process, March 31
40,000
Finished goods, March 31
15,200
Cost of goods manufactured
183,000
Raw materials, March 1
15,800
Direct labor used
57,000
Raw materials, March 31
17,200
Selling costs incurred
32,000
Direct materials used
66,600
How much of the above amounts will Ceradyne report on its income statement as product costs for the month of March?
Work in process, March 1
$36,000
Finished goods, March 1
$12,800
Work in process, March 31
40,000
Finished goods, March 31
15,200
Cost of goods manufactured
183,000
Raw materials, March 1
15,800
Direct labor used
57,000
Raw materials, March 31
17,200
Selling costs incurred
32,000
Direct materials used
66,600
Explanation / Answer
so COGS of $ 179,000 to be reported on income statement.
Brginning WIP 36000 Add:cost of goods manufactured 183000 less: Ending WIP (40000) Cost of goods sold 179,000