ACCOUNTING 221 Quiz 2- ACCT 221 Quiz 2 Questions and Answers: University of Maryland Global Campus
4 views 0 purchase
Course
Accounting
Institution
Accounting
ACCT 221 Quiz 2
University of Maryland Global Campus
Professor Susan Sharp
Fall 2019
1. Baltimore Manufacturing Company just completed its year ended December 31, 2018. Depreciation for the year amounted to $180,000: 20% relates to sales, 20% relates to administrative facilities, and the rem...
ACCT 221 Quiz 2
University of Maryland Global Campus
Professor Susan Sharp
Fall 2019
1. Baltimore Manufacturing Company just completed its year ended December 31,
2018. Depreciation for the year amounted to $180,000: 20% relates to sales, 20% re-
lates to administrative facilities, and the remainder relates to the factory. Of the total
units produced during FY 2016: 75% were sold in 2018 and the rest remained in fin-
ished good inventory. Use this information to determine the dollar amount of the total
depreciation that will be contained in Cost of Goods Sold. (Round dollar values & enter
as whole dollars only.)
Answer: $81,000
How to do #1:
$180,000 x 60% = $108,000 Product Costs
$108,000 x 75% = $81,000
Depreciation amount X % charged to factory X % sold.
2. Baltimore Manufacturing had a Work in Process balance of $89,000 on January 1,
2018. The year end balance of Work in Process was $99,000 and the Cost of Goods
Manufactured was $790,000. Use this information to determine the total manufacturing
costs incurred during the fiscal year 2018. (Round dollar values & enter as whole dollars
only.)
Answer: $800,000
How to do #2:
Beg. inv. + total manuf. costs - end. inv. = Cost of Goods Manuf. or
$89,000 + total manuf. costs - 99,000 = $790,000
Total manuf. costs = $800,000
Cost of goods manufactured + ending WIP - beginning WIP.
, Item Amount
Sales $200,000
Cost of Goods Manufactured 41,000
Direct Material Purchased 80,000
Factory Overhead 20,000
Work in Process - January 1 60,000
Work in Process - December 31 30,000
Direct Material - December 31 20,000
Finished Goods Inventory - December 31 56,000
Net Income 30,000
Direct Materials used 60,000
Cost of Goods Sold 63,000
3. Annapolis Clothing Company manufactures quality boating attire. The following se-
lected financial information for the fiscal year 2018 is provided:Use this information to
determine the dollar amount of Annapolis Clothing's Finished Goods Inventory for Janu-
ary 1, 2018. (Round dollar values & enter as whole dollars only.)
Answer: 78,000
How to do #3:
Cost of goods sold + ending finished goods - cost of goods manufactured.
4. During FY 2018 Bay Manufacturing had total manufacturing costs are $450,000.
Their cost of goods manufactured for the year was $495,000. The January 1, 2019 bal-
ance of Work-in-Process Inventory is $40,000. Use this information to determine the
dollar amount of the FY 2018 beginning Work-in-Process Inventory. (Round dollar val-
ues & enter as whole dollars only.)
Answer: 85,000
How to do #4:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TESTSOURCE. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.50. You're not tied to anything after your purchase.
