Snack Smart, Inc., is a manufacturer of prepacked snack food for the health conscious consumer. The company's raw materials inventory only contains direct materials. During the year, the company purchased $13.500 of direct materials. Tre ending raw materials inventory balance was $2,000 higher than the beginning raw materials inventory balance. The company incurred the following additional factory costs: rent $4,000 $4,500 depreciation. utilities $2,500 indirect labor $3,100 Indirect materials $250 On the company's cost of goods sold scheduled prepared at year end, the cost of goods manufactured for the year was $25,000 and there was a net decrease of $2,250 in finished goods invertory Which of the following statements is incorrect assuming the company uses an actual costing system to account for manufacturing overhead, and direct laborers were paid $7.500 curing the year? OA. Total actual manufacturing overhead costs for the year were $14,350, OB. Direct materials used during the year equaled $11,250. C. The net increase in work in process inventory during the year was $8,350. OD. The beginning finished goods inventory was $2,250 higher than the ending finished goods inventory. OE. To calculate gross profit, $27,250 would be subtracted from sales revenue.
Snack Smart, Inc., is a manufacturer of prepacked snack food for the health conscious consumer. The company's raw materials inventory only contains direct materials. During the year, the company purchased $13.500 of direct materials. Tre ending raw materials inventory balance was $2,000 higher than the beginning raw materials inventory balance. The company incurred the following additional factory costs: rent $4,000 $4,500 depreciation. utilities $2,500 indirect labor $3,100 Indirect materials $250 On the company's cost of goods sold scheduled prepared at year end, the cost of goods manufactured for the year was $25,000 and there was a net decrease of $2,250 in finished goods invertory Which of the following statements is incorrect assuming the company uses an actual costing system to account for manufacturing overhead, and direct laborers were paid $7.500 curing the year? OA. Total actual manufacturing overhead costs for the year were $14,350, OB. Direct materials used during the year equaled $11,250. C. The net increase in work in process inventory during the year was $8,350. OD. The beginning finished goods inventory was $2,250 higher than the ending finished goods inventory. OE. To calculate gross profit, $27,250 would be subtracted from sales revenue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Snack Smart, Inc., is a manufacturer of prepacked snack food for the health conscious consumer. The company's raw materials inventory only contains direct materials. During the year, the company purchased $13,500 of direct materials. Tre
ending raw materials inventory balance was $2.000 higher than the beginning raw materials inventory balance.
The company incurred the following additional factory costs:
rent
$4,000
$4,500
depreciation
utilities
$2,500
indirect labor
$3,100
Indirect materials
$250
On the company's cost of goods sold scheduled prepared at year end, the cost of goods manufactured for the year was $25,000 and there was a net decrease of $2,250 in finished goods inventory.
Which of the following statements is incorrect assuming the company uses an actual costing system to account for manufacturing overhead, and direct laborers were paid $7.500 curing the year?
OA. Total actual manufacturing overhead costs for the year were $14,350.
OB. Direct materials used during the year equaled $11,250.
OC. The net increase
work in process inventory during the year was $8,350.
OD. The beginning finished goods inventory was $2,250 higher than the ending finished goods Inventory.
OE. To calculate gross profit, $27,250 would be subtracted from sales revenue.
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